Microloans are typically defined as very small, short-term loans with a low-interest rate, extended to self-employed individuals, new startups with very low capital requirements, or small businesses with only a few employees.
Microlending is also a solution for funding impoverished borrowers in underdeveloped communities and countries. The system of lending in small amounts has successfully encouraged entrepreneurship in the communities.
Micro Loans Change Communities
Thanks to micro loans, women who once lived on the edge of survival now own successful small businesses: running grocery stores, sewing, creating handcrafts, and more. They’re making money to feed, clothe, and educate their children. And as loans are repaid, we keep giving loans for others.