Neem oil is used for dandruff, nourishing the skin, killing lice, clearing acne and treating nail fungus, according to alternative medicine expert Cathy Wong for About.com. It is also a natural insecticide, and the oil is a natural safeguard against insect bites. Neem oil is used to prepare cosmetics, according to Wikipedia.
Wong notes that neem oil acts as a moisturizer for dry scalp. Neem oil is mixed with carrier oil for use as a natural shampoo for the hair. Leave the solution in the hair for 30 minutes before washing it out. There is also research indicating neem oil kills lice eggs in the hair. It is an antibacterial agent that neutralizes fungi.
Wikipedia reports that the oil is used in India to produce cosmetics such as creams, hair products and soap. It is also used as a natural folk remedy for fever, tuberculosis, leprosy, inflammation, malaria and rheumatic disorders. It is an effective topical solution for oral and vaginal areas when applied in extract form. Neem oil is used as a pesticide in organic farming. The oil keeps away pests such as aphids, mealy bugs, cabbage worms and mites. The substance can be used as a domestic insecticide to kill ants, roaches and bed bugs.