A loan purpose is the purpose or reason for which you want to take out a loan. Below you will find a number of common loan goals.
Extra spending limit
It may be a wish to have extra spending space. This is often a wish when people generally manage to make ends meet, but in some periods would like to have a buffer because certain costs are temporarily higher. To save on fixed costs, someone can refinance or restructure a loan.
Financing life events
Money is also often borrowed to finance a certain life event, or its consequences. Common examples include financing a wedding, financing a divorce, financing a birth, financing a death , or financing a relocation or recreation home .
Financing medical intervention
Borrowing money can also be a solution to finance a medical procedure. A loan is suitable to finance a medical necessity. But also, for example, to finance plastic surgery.
When someone wants to do a renovation to his house, a credit is often taken out for this. Examples include a loan for a bathroom renovation , kitchen renovation , a new bay window , a new garden or a living room renovation . If you take out a loan for the renovation of your owner-occupied home, the interest is tax-deductible !