to borrow = to take or get or receive (billi-da in Korean) Note the direction of movement!!
to loan = to give (ju-say-yo in Korean) Note the direction of movement!!
a loan = a noun (a contract receipt, yum-su-jung in Korean)

English uses two special verbs, borrowing/loaning, but some languanges do not, so this aspect of English can be a difficult concept and I noticed a lot of mixups in Korea, thus I wrote this dialogue, a quiz or lesson, to teach the difference between...

1. borrow
2. loan/lend and
3. a loan.

Jon: Hey big brother I need to _________ your lawn mower.
Mike: Ok, but can you ___________ me your car now?
John: Sure, here are the keys.

Mike: Yesterday I went to the bank to ______ some money. I asked the banker, "Can you _____ me some money?" He said, "I would be happy to _______ you some. How much do you want me to loan you?".....

I went home and told my girlfriend/wife/parents that I got ________ from the banker. My older son said, "Maybe I can get a loan too. Can I borrow your motorcycle and go there now?" I said, "Wait a minute. First you have to pay back the money you ___________ from me, then you can __________ from the bank," He wasn't happy. He also wanted _________ from the bank.

Students enjoy this short but challenging exercise. Teacher and students should insert the answers on the board or overhead projector toward the end of the class. One point to note: Lend is correct English but many people don't use it much. Here are two examples:
1. Did he lend you the book?
2. Did he loan you the book?

Both forms are common English.

Addendum, by Judie Plumb
jplumb@gwinnett.tec.ga.us
Workplace & Health Literacy Lead Instructor
Gwinnett Technical College, Lawrenceville, Georgia, USA:

Another idea that I bring to such a lesson is the "power" angle. I lend, because I have the ability or power to do so ("thing" needed). I borrow because I need.

EX: The banks LEND money. They have the ability, authority, power to lend.

I borrow money from the bank because I have the need. When I explain the 2 words in this manner to my adult students, there is no more confusion.

After a dialogue and some exercises, both oral and written, I have the students "borrow" 3 items from other students. It can get fairly comical.

Judie Plumb