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Mid-13c.from Old Norse lanrelated to lja "to lend," from Proto-Germanic laikhwniz (cf. Old Frisian len "thing lent," Middle Dutch leneDutch leen "loan, fief," Old Cash loans edmonton alberta German lehanGerman Lehn "fief, feudal tenure"), originally "to let have, to leave (to someone)," from PIE leikw- "to leave" (see relinquish).
The Norse word also is cognate with Old English læn "gift," which did not survive into Middle English, but its derived verb lænan is the source of lend. As a verb, loan is attested from 1540s, perhaps earlier, and formerly was current, but has now been supplanted in England by lendthough it survives in American English.
Loan word (1874) is a translation of German Lehnwort ; loan-translation is attested 1933, from German Lehnübersetzung.