Personal loan is a multi purpose loan which you can use for any legal purpose, like:-

Wedding

You may need to come up with cash to pay for your special day. If you take a personal loan it can be an affordable solution to cover all of your wedding expenses.

Traveling & vacation

Who doesn’t like to travel? For unplanned vacation you can apply for a personal loan, which can be disbursed to your account in a matter of hours! With less documentation you can enjoy a hassle free vacation.

Renovation of your house

You can use a personal loan for a home improvement project & modify your  kitchen or bathroom.

Purchase a vehicle & gadgets

Keeping pace with the pace at which technology is advancing is not easy. From entertainment units to home appliances & electronics are now integrated with ‘smart’ technology to make your daily work easier. Apply for a personal loan to meet such needs.

Emergency expenses

Many people do not have an emergency fund, so they are unwilling to respond when they suddenly need cash. In this case you can opt for personal loan. It will cost you less then credit card dept.

To Cover Medical Expenses

With a personal loan, you can get your treatment done without delay and pay your medical expenses with time. 

These loans are repaid in monthly installments over a period of few months or over a few years. This may take longer, it is depending on your circumstances and how diligent you are at making the payments.

Aside from gambling and illegal activities, here are some other things you might not normally use a personal loan to pay off. Like:-

Paying for College tuition

Under the Higher Education Opportunity Act of 2008, lenders providing private education loans must make special disclosures, provide borrowers with a 30-day rumination period within three days of disbursement of funds and give themselves the option to cancel . Schools cannot be affiliated. These are just some of the rules that loans for educational use must follow.

Not all the lenders offer personal loans that meet all of these requirements. Since they do not adhere to these strict rules, many lenders actually prohibit the use of their personal loans for tuition-related expenses.

Down payment of the home
If you want to take out a personal loan to use as a down payment, you will be on the hook for two loans – the mortgage payment and the repayment of the personal loan. From a lender’s perspective, this can increase a borrower’s risk of defaulting on their payments, which is why traditional lenders and FHA lenders don’t allow you to use a personal loan for a down payment.

Some expenses of business
If a lender has no restrictions on using their loan amount for your small business, then you will be able to use the loan for any of your business needs. However, some lenders do not allow you to use your personal loan amount for any type of business expense.

A personal loan can be a useful tool for financing expensive projects, repairs and even big surprising expenses, yet there are some costs that they cannot be used to cover .So, personal loan can be quite easy to help us when we are required for money and this is a easy way to fulfill requirements. While some lenders may be more lenient on the use of the loan, you should always double-check the terms to make sure the terms are clear to you.