A micro loan is a small-scale, short-term financial product designed to provide individuals, startups, and micro-enterprises with access to smaller loan amounts than traditional bank loans. Typically, these loans are utilized by self-employed professionals and small business owners to meet immediate financial requirements, invest in income-generating activities, and expand their businesses. Micro loans are particularly beneficial for those who may have difficulty obtaining conventional bank loans due to factors like bad credit. These loans serve as a vital tool for promoting economic empowerment and financial inclusion for individuals and communities with limited access to formal financial services.
Benifits
Microloans offer accessible credit, financial assistance for startups and small enterprises, empowerment for marginalized individuals, job creation, improved loan repayment terms, community support, and fostering entrepreneurship, promoting financial inclusion, supporting economic growth, and empowering individuals and small businesses significantly.