Lending vs Borrowing
It is clear that there is a difference between lending and borrowing. Lending and borrowing are, in fact, two actions that are different in sense and purpose. Lending is the gerund or the present participle of the verb lend. Borrowing, on the hand, is a noun. In grammar, the word borrowing is used to refer to “a word, idea, or method taken from another source and used in one’s own language or work.” As for the verb lend, it comes from the Old English word lǣnan. Other than creating the word lending, lend is also used in a number of phrases. For example, lend an ear, lend a hand, etc.
What does Lending mean?
Lending consists of giving money to somebody with the intention of collecting back the original amount given and the interest if it is a commercial loan after a certain period. If a bank loans you money in the form of commercial loan then, the bank is entitled to charge a certain amount of interest on the original money lent to you. Lending is not always about money, but it can be about objects as well.
You can lend objects too to somebody with the intention of collecting back the objects after a certain period.
What does Borrowing mean?
Borrowing, on the other hand, consists of taking money from another person or a financial institution with the intention to pay back the amount of money borrowed after a certain period. The purpose of lending money is to gather interest on the amount of money lent to some person for a certain period. Then, the purpose of borrowing is to make use of the money for certain purposes such as home construction, medical expenditure, hospital expenses, school education, higher education, private functions and the like. Just as in the case of lending, borrowing can also be done in terms of objects. In short, it can be said that you can borrow objects with the intention of returning them back to the owner after a certain period or preferable after use.
What is the difference between Lending and Borrowing?
• Lending consists of giving money to somebody with the intention of collecting back the original amount given and the interest if it is a commercial loan after a certain period. Borrowing, on the other hand, consists of taking money from another person or a financial institution with the intention to pay back the amount of money borrowed after a certain period. This is the main difference between lending and borrowing.
• Lending is not always about money, but it can be about objects as well.
• It is understood both lending and borrowing are two different actions that are different in purpose too.
• The purpose of lending money is to gather interest on the amount of money lent to some person for a certain period.
• On the other hand, the purpose of borrowing is to make use of the money for certain purposes such as home construction, medical expenditure, hospital expenses, school education, higher education, private functions and the like.
• Just as in the case of lending, borrowing can also be done in terms of objects.
It is interesting to note that the economy of several countries depends to a great extent on the business of lending and borrowing.