Loaning of Money
Definition
The loaning of money is when one party gives money to another with the expectation that it will be paid back, usually with interest.
Analogy
It's like lending your friend a book from your personal library. You expect to get it back eventually (and maybe even hope for a small favor in return as thanks - that's like the interest).
Related terms
Interest Rate: This is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
Credit: Credit refers to an agreement where a borrower receives something of value now and agrees to repay the lender at some date in future, generally with interest.
Debt: Debt is something, typically money, that is owed or due. When you borrow money through a loan, you are in debt until you pay it back.
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