Neem is variously known as "Sacred Tree," "Heal All," "Nature's Drugstore," "Village Pharmacy" and "Panacea for all diseases". Products made from neem trees have been used in India for over two millennia for their medicinal properties: neem products are believed to be anthelmintic, antifungal, antidiabetic, antibacterial, antiviral, contraceptive and sedative. It is considered a major component in Ayurvedic and Unani medicine and is particularly prescribed for skin disease. Neem is a key ingredient in non-pesticidal management (NPM), providing a natural alternative to synthetic pesticides. Neem seeds are ground into a powder that is soaked overnight in water and sprayed onto the crop. To be effective, it is necessary to apply repeatedly, at least every ten days. Neem does not directly kill insects on the crop. It acts as an anti-feedant, repellent, and egg-laying deterrent, protecting the crop from damage. The insects starve and die within a few days. Neem also suppresses the hatching ...more

Source: wikipedia

Every part of the neem tree has great medicinal value. The fruits, seeds, oil, leaves, roots and bark - are all used in Ayurvedic medicines.
Just like every part of the coconut tree is of use (not for medicines) , neem is a tree of which every part is of medicinal use.

Source: http://www.neemfoundation.org/neem-articles/neem-in-health/neems-medicinal-uses.html

Neem act as anti bacterial, anti parasitic, anti fungal, anti protozoal and anti viral thus helps in protection from all the microorganisms, which are always ready to invade in our body causing serious ailments.

Local application of neem powder or neem oil has miraculous results. As it is a famous anti microbial herb, it renders all the microorganisms inactive therefore helping in proper healing of wound without causing any infections and septic conditions.
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Taking bath of neem leaves water is a very common sight in Indian homes that helps our body to counter mild infections, which our body might get in day-to-day activity.

Its tropical application makes us relieved from acne, eczema and even ringworms

In skin related diseases, neem works as blessing of God on mankind. It has an action on almost every kind of skin disease thus making its indication in eradicating every kind of itch, rash, infection and allergy. ...more

Source: google search

Anti bacterial, anti parasitic, anti fungal, anti protozoal and anti viral

Its anti bacterial

In Cities and jungle, it is free of cost

Very useful

It can cure various diseases

Antiseptic,disinfectant,blood purifier,germicide,air purifier.