What does the cryptic crossword clue "Solvent as the loan is settled (7)" mean?

The definition is "Solvent". The wordplay uses an anagram. anagram of THELOAN ("the loan") [anagram: "settled"] = ETHANOL; definition: "Solvent" The answer is ETHANOL.

Solvent as the loan is settled (7)

Guardian Cryptic #29031 | 17 Down | 2023-03-30 flower

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