Loaning players out in their last year of contract is a huge business. They wont pay his full wages, lets say they can pay 50-60% of his current wage what is about 50-60k/week.
It makes sense from Everton's point of view they dont want to buy a slow 31 year old players with a 2-3 year long contract but use him now and they see what he has to offer them.
But from City's side it makes no sense, we will pay a nice part of his wage to make Everton stronger, and when he comes back he will leave for free.
Dont know why didnt any team made a small offer for him, did he want way too big wages or what? Teams like WHU, Fulham, WBA etc.