Overview
Loans for Specific Purposes
What Are Loans for Specific Purposes?
A specific-purpose loan is a type of financing where the lender restricts how the borrowed funds can be used. Unlike personal loans that can be spent freely, these loans are tied directly to a particular expense.
Because lenders know exactly how the funds will be used, they often offer:
Lower interest rates
Longer repayment terms
More favorable conditions
However, these benefits come with less flexibility.
