Close to it! It just disappears from your kindle after the 2 or 3 week borrowing time. No more overdue fees! Borrowers are limited on how many they can have out at a time, and I believe you can't get a book unless it is physically available in the library. Guess that protects the authors financially. I'm on the waiting list for a few books. Don't know if it works the same way everywhere, but here you have to have a library card at the library that you're technically "borrowing" from. Our library is part of a wider co-op so I think it's pulling from several collections. I'm planning to get more library cards from other places so i have more to choose from.
If you borrow from Amazon, they only let you have 1 at a time. Which sounds reasonable, but I want reference books and mysteries for daytime and tax guides to fall asleep to at night.
I can loan books I've purchased for my kindle, but say if I loan it to my daughter's kindle, it disappears off my kindle for that time. Only difference is, I know I'll get it back, and in good condition...