lending library

noun
1.
Also called circulating library, rental library. a small library that is maintained by a commercial establishment, as a drugstore, and is composed largely of current books that are lent to customers for a fee.
2.
Chiefly British. a public library that lends materials or the division or section of it that carries out this function.

Origin:
1700–10

Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
lending library
 
n
1.  Also called (esp US): circulating library the department of a public library providing books for use outside the building
2.  a small commercial library

Collins English Dictionary - Complete & Unabridged 10th Edition
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Example sentences
Guests can swim at the indoor pool, relax in the hot tub or pick up a book at
  the lending library.
The clubhouse offers exercise equipment, a lending library, public telephone
  and mail room.
It also has a lending library with books and movies.
The inn features an indoor pool, fitness center and lending library.
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