Originally Posted by
BAMF
Err, yes they do.
Go into your bank and ask for an auto loan. then tell them you want to use that auto loan to buy a trampoline. They'll tell you that they don't make trampoline loans, and the auto loan is to be used for a car. Then, they'll further say that while you own the car, you are required by the terms of the loan to keep comprehensive insurance with minimum coverage limits on it. And they may also give a million and 1 other conditions of the loan.
I'm talking about a general unsecured loan. If I ask for a cash loan to start a business, I can use that money as I see fit to start said business. Of course, the bank will want to see my business plan and such, but if I simply take out an open loan, (which I have done before) they simply set the repayment terms.