According to the Online Etymology Dictionary, the verb loan is attested from 1540s. loan. This entry also indicates that loan "has now been supplanted in England by lend, though it survives in American English." So, rather than a neologism, the verb loan is a vestige!
In formal writing and speaking, to avoid unnecessary distractions, I would employ lend as the verb.
Frankly speaking I had never come across "loan" used as verb. That was very good to learn.Â
The Webster's dictionary online provides the following information for " loan" as a verb (http://www.merriam-webster.com/dictionary/loan):
The verbÂ loanÂ is one of the words English settlers brought to America and continued to use after it had died out in Britain. Its use was soon noticed by British visitors and somewhat later by the New England literati, who considered it a bit provincial. It was flatly declared wrong in 1870 by a popular commentator, who based his objection on etymology. A later scholar showed that the commentator was ignorant of Old English and thus unsound in his objection, but by then it was too late, as the condemnation had been picked up by many other commentators. Although a surprising number of critics still voice objections,Â loanÂ is entirely standard as a verb. You should note that it is used only literally;Â lendÂ is the verb used for figurative expressions, such asÂ “lending a hand”Â or“lending enchantment.”
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