@judeela As far as I know, I don't think so. I have the app too, and the only thing I can do with it is, well, read.
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Yes, but not from the Nook app. You need to log in to bn.com from your web browser, then click on My Nook to get to your library. Find the book you want to lend and click on the Lend Me banner.
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Or she could just log into your account and read the book.