You can use a one year loan for whatever purpose you choose. But as with any loan you will pay back more than you borrow, so you should be certain you need the money before applying. Examples of things you could use a 12 month loan for include a car or bicycle purchase, necessary home improvements such as a new oven or washing machine, or to fix a broken boiler. Ultimately, it is your choice. The lender will just want to be confident you have the means to repay the loan before approving your application.