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Neem oil, Neem lotion, Neem cream and Neem salves can be applied several times a day directly to common skin rashes, such as dermatitis, eczema, and granuloma annulare. Neem protects the skin and reduces inflammation, discomfort and itching, lubricates irritated areas, and moisturizes dry skin. Bath or shower with Neem soap, apply a Neem lotion, cream, or salve several times a day to affected areas. Consider a Neem leaf extract or capsule to help boost the immune system.