noun · neutral

loan

UK/ləʊn/US/loʊn/LOAN

Band 4-5speakingtask2

an amount of money that someone borrows and must pay back, often with interest

Examples

“I took out a small loan from the bank to fix my car.”

“The student applied for a loan to cover tuition fees.”

“They paid off the loan ahead of schedule.”

Band 8 sentence

“Because interest rates were favourable, we decided to take out a modest loan and pay it off aggressively over three years.”

Collocations

  • take out a loan
  • pay off a loan
  • apply for a loan
  • loan shark

Word family

loan nounloan verbloaned adjective/verb (past)

Common mistakes

Can you borrow me $50?→Can you lend me $50?

take a loan→take out a loan

Say it for a higher band

5money→6borrow→7+loan

Synonyms

credit

mortgage

Easily confused

borrow

“I need to borrow some money until payday.”

Related words

buypaybalancecashpricespendchargepurchase

Learn this word with the rest of its set, and get reminded at the right time.

In Shopping & Money

Learn it with its set