Lending vs Borrowing
Lending and borrowing are two distinct actions with different meanings and purposes. Lending is the gerund or present participle of the verb “lend,” which originates from the Old English word lǣnan. It is used in various phrases such as “lend an ear” or “lend a hand.” Borrowing, on the other hand, is a noun used in grammar to describe “a word, idea, or method taken from another source and used in one’s own language or work.”
What does Lending mean?
Lending involves giving money to someone with the intent to collect the original amount back, and, if it is a commercial loan, the interest as well, after a specified period. Lending is not limited to money; objects can also be lent to someone with the intention of having them returned after a certain period.
What does Borrowing mean?
Borrowing refers to taking money from another person or financial institution with the intention of paying back the borrowed amount after a certain period. The purpose of lending money is to collect interest on the amount lent for a specific period, while the purpose of borrowing is to use the money for various purposes such as home construction, medical expenses, school education, or private functions. Similar to lending, borrowing can also involve objects, with the intention of returning them to the owner after a specific period or after use.
What is the difference between Lending and Borrowing?
• Lending involves giving money to someone with the intention of collecting the original amount and interest (if applicable) after a certain period; borrowing involves taking money from another person or financial institution with the intention of paying back the borrowed amount after a certain period.
• Lending can involve not only money but also objects.
• Both lending and borrowing are different actions with different purposes.
• The purpose of lending money is to collect interest on the amount lent for a specific period.
• The purpose of borrowing is to use the money for various purposes such as home construction, medical expenses, school education, or private functions.
• Borrowing, like lending, can also involve objects.
Key Takeaways
- Lending involves giving money or objects to someone with the intention of collecting the original amount and interest (if applicable) after a certain period.
- Borrowing refers to taking money or objects from another person or financial institution with the intention of returning them after a certain period or after use.
- The economy of several countries relies heavily on the business of lending and borrowing.
