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: -Microcredit refers to the practice of providing small loans to individuals or groups who do not have access to traditional banking services, while microfinance refers to a broader range of financial services, including savings and insurance, in addition to credit.

Detailed explanation-3: -Microcredit is a part of the larger microfinance industry which focuses on providing individuals having low income with credit, savings, insurance and other possible financial services. The term micro in microcredit indicates the small amount of money that the businesses borrow or save.

Detailed explanation-4: -microcredit, also called microbanking or microfinance, a means of extending credit, usually in the form of small loans with no collateral, to nontraditional borrowers such as the poor in rural or undeveloped areas.

Detailed explanation-5: -Notes: Micro credit are the loans of very small amounts given to low income groups or poor household.