What context can I use each word in?
Learn when and how to use these words with these examples!
loan
Example
I need to take out a loan to buy a new car. [loan: noun]
Example
Can you loan me your pen for a moment? [loan: verb]
Example
He loaned his bike to his friend for the weekend. [loaned: past tense]
advance
Example
The company gave him an advance on his salary. [advance: noun]
Example
We need to advance our research to meet the deadline. [advance: verb]
Example
He made an advance reservation for a table at the restaurant. [advance: adjective]
Good things to know
Which word is more common?
Loan is more commonly used than advance in financial contexts, as it specifically refers to the borrowing of money. However, advance is more versatile and can be used in a wider range of situations.
What’s the difference in the tone of formality between loan and advance?
Both loan and advance can be used in formal and informal contexts, but loan is more commonly used in formal settings due to its association with financial transactions.
