Overview
When you receive a loan, you have flexibility in how you use the funds. However, approved uses may vary by lender, and borrowers must select their intended use before being matched with a loan offer. This guide outlines common allowable uses, restrictions, and what to consider before applying.
Approved Uses for Loan Funds
In most cases, loan proceeds can be used for:
✔ Paying off credit cards – Consolidating high-interest debt can help simplify payments and reduce costs.
✔ Paying medical bills – Covering unexpected or planned healthcare expenses.
✔ Making a large purchase – Financing necessary items, such as appliances or personal expenses.
✔ Relocating – Covering moving costs or rent deposits.
✔ Traveling – Funding personal travel expenses.
✔ Other personal expenses – General financial needs, depending on lender policies.
Restricted Uses for Loan Funds
Loan proceeds generally cannot be used for:
❌ Illegal activities
❌ Gambling or speculative investments
❌ Purchasing securities or other financial instruments
❌ Funding another person’s loan
Final Thoughts
Before applying for a loan, ensure your intended use aligns with lender requirements. If you have questions about approved uses, check your loan terms or contact support.
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