A multipurpose loan is one in which the borrower is free to use the loan amount for any reason. Multipurpose finance services offer a certain amount of loan that loan can be used for a variety of purposes where immediate funds are required. These loans do not require any type of collateral. If you qualify for a multipurpose loan, the bank will not require any of your collateral. In comparison to other types of loans, a multipurpose loan demands the least amount of paperwork. A multipurpose loan has simple repayment terms and low-interest rates. These loans are fairly rapid, with funds arriving within 2 to 3 days.