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The definition of a loan is the agreement of lending money with interest and a plan to repay it. An example of a loan is the agreement to give you money to buy a house. An instance of lending. A bank that makes loans to small | meaning in the Cambridge English Dictionaryloan | meaning of loan in Longman Dictionary of loan definition: 1. an amount of money that is borrowed, often from a bank, and has to be paid back, usually…. Learn /ləʊn $ loʊn/ S2 W2 noun 1 [ countable] BORROW. an amount of money that you borrow from a bank etc loan of a loan of £60,000 I had to take out a loan to buy my car. It’ll be years before we’ve paid off the loan. 2 [ singular] ;· A loan is when you receive money from a friend, bank or financial institution in exchange for future repayment of the principal, plus interest. The principal is the amount you borrowed, and ;· The term loan refers to a type of credit vehicle in which a sum of money is lent to another