LEND

Lend is a verb meaning to grant temporary use of something to another person, with the expectation that it will be returned. The item can be money, goods, or services. The act may be formalised by a loan agreement or informal, and the terms vary by context. The counterpart is borrow; to borrow is to receive something temporarily, with an obligation to return it.

In financial contexts, lending is a core function of banks, credit unions, and lending platforms, providing funds to individuals, businesses, or governments. Loans are typically repayable with interest according to a schedule, and may be secured by collateral or unsecured. Informal lending between individuals often carries lower formal constraints but may still involve agreements about repayment, interest, or reciprocal obligations. Some forms include microfinance, payday lending, and peer-to-peer lending.

Ownership and use: when lending money, the lender does not retain ownership of the borrowed funds; the borrower uses them and must repay the principal, plus any agreed interest. For tangible items, the lender retains legal ownership and the borrower has temporary use; damage, loss, or failure to return may create liability. Terms, including interest rate, penalties for late payment, and remedies for default, are typically set by contract or law. Legal frameworks govern lending to protect borrowers from predatory terms, usury, and discrimination.

Etymology and usage: the word lend derives from Old English lǣnan or lǣnan, related to the noun loan and to cognate words in other Germanic languages. In everyday speech, lend and loan are often used interchangeably in reference to money or goods, though some jurisdictions prefer “loan” as a verb in formal contexts.