The term "any purpose loan" in the UK has often raised eyebrows as to what do people actually want a loan for? It is common on online loan applications to state the amount you are looking to borrow and the purpose of the the loan.

Common purposes for borrowing money, either secured or unsecured, are normally debt consolidation and home improvements. Although people fo often apply for car loans, wedding loans and loans for a holiday as well so the purposes can be mixed. Loans for opening up a business are also becoming more and more popular.

Payday loans work slightly differently. You will see from almost all online payday loan application forms that you will not be asked the purpose of borrowing the quick cash. This is not unusual, and payday lenders often argue that the purpose is irrelevant as the amount being borrowed is relatively small.

So, can you use a payday loan for any purpose? The answer here is - almost. The line here is that you can use a payday loan for any legal reason. Popular reasons are paying a quick bill or car repairs etc. Payday loans should not be used to pay for a "night out on the town" - this isn't deemed an "emergency situation" that payday loans are designed for.