BANKING AFFAIRS

Detailed explanation-1: -What Is Microcredit? Microcredit is a common form of microfinance that involves an extremely small loan given to an individual to help them become self-employed or grow a small business. These borrowers tend to be low-income individuals, especially from less developed countries (LDCs).

Detailed explanation-2: -Microfinance is a form of financial service which provides small loans and other financial services to poor and low-income households.

Detailed explanation-3: -Notes: Micro credit are the loans of very small amounts given to low income groups or poor household.

Detailed explanation-4: -Microfinance offerings include small loans – called microloans, savings accounts (microsavings) and insurance policies (microinsurance). Various lenders offer microloans, including nonprofit organizations, banks and credit unions.

Detailed explanation-5: -What is a small loan? A small loan is a personal loan which means it will usually be unsecured – so you don’t have to put up any assets, such as your home, as security.