What context can I use each word in?
Learn when and how to use these words with these examples!
debenture
Example
The company issued debentures to raise funds for its expansion plans. [debentures: noun]
Example
Investors can purchase debentures to earn a fixed rate of return. [debentures: noun]
loan
Example
I took out a loan to buy a new car. [loan: noun]
Example
The bank agreed to loan me the money I needed to start my business. [loan: verb]
Good things to know
Which word is more common?
Loan is more commonly used than debenture in everyday language. Loan is a versatile financial instrument that can be used for various purposes, while debenture is less common and typically used in the context of corporate finance.
Whatโs the difference in the tone of formality between debenture and loan?
Debenture is a more formal term than loan. It is typically used in the context of corporate finance and investment, while loan is used in both formal and informal contexts.
