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Simple English definitions for legal terms
loan for use
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A quick definition of loan for use:
A loan for use is when someone lends something to another person, and the borrower must use it the way it's supposed to be used and return it when they're done. There's no extra charge for borrowing it.
A more thorough explanation:
A loan for use is an agreement between a lender and a borrower where the lender gives an asset to the borrower to use for a specific purpose or according to the agreement. The borrower must return the asset when they are finished using it, and no interest is charged.
- A friend lends you their lawnmower for the weekend so you can mow your lawn. This is a loan for use because your friend expects you to return the lawnmower when you are finished using it.
- A library lends you a book to read. This is also a loan for use because the library expects you to return the book when you are finished reading it.
Both of these examples illustrate a loan for use because the lender is giving the borrower an asset to use temporarily, and the borrower is expected to return the asset when they are finished using it. Additionally, no interest is charged in either scenario.