Strange.In addition, old-fashioned prescriptive teachers of English would say that you should not use "loan" as a verb at all; the verb to use is lend, while loan should only be used as a noun.
That may well be. Nevertheless, considering that you will also find these same old-fashioned prescriptive teachers of English telling you that you can't end a sentence with a preposition, either, you should not be surprised that they would condemn this usage, regardless of its history.Strange.
Loan has been used as a verb since the 13th Century, according to the OED.
Indeed. For example, in AE = car rental, in BE = car hireIn American English, the correct answer would be "rent" or "borrow".