The many uses of a hand towel are:
A hand towel is used for drying hands after washing.
Besides the general use for drying one's hands, hand towels are also used for promotional purposes
Hand towels customized with the company/organization logo are used as a means of advertisement
Hand towels are very popular during corporate outings and events like golf. They come with a grommet or hook to be fixed to the golf bag

Hand towels can be made of different materials. The main criteria are they should be soft and absorbent. Some of the most common materials used for making hand towels are:
Cotton
Terrycloth
Paper
Silk