Consumer loans can be used to buy cars, home appliances, jewelry, study abroad or travel, decoration, etc. However, in these ways of use, the applied consumer loan cannot be used for investment. When a borrower applies for a consumer loan, the lending institution will know the main purpose of the borrower's loan and need the borrower to submit relevant consumption certificates. In order to prevent the borrower from using the loan for other purposes, the lending institution will give all the loan amount to the merchant at one time after the borrower successfully applies for the loan. Moreover, in the contract signed by both parties, the purpose of the loan will also be agreed, and the loan can only be used for consumption, not for investment. Consumer loans can be used for this.

What kind of loan is a consumer loan?

Consumer loans are loans that can only be used for consumer spending, that is to say, the funds of consumer loans can only be consumed and have no other uses. After banks issue consumer loans, users usually need to hand in relevant records and vouchers of consumption. If the user does not upload the relevant consumption voucher, then it cannot be said that the loan is used for consumption, and the bank can ask the user to pay off all debts at one time. This article is mainly about the knowledge points about which consumer loans can be used, and the content is for reference only.