What is microcredit?

Microcredit

Microcredit is the extension of very small loans (microloans) to impoverished borrowers who typically lack collateral, steady employment and a verifiable credit history. It is designed not only to support entrepreneurship and alleviate poverty, but also in many cases to empower women and uplift entire communities by extension. In many communities worldwide, in developed and developing nations alike, women lack the highly stable employment histories that traditional lenders tend to require. This reality might result from factors such as leaving the paid workforce to care for children and elderly relatives. As of 2009 an estimated 74 million men and women held microloans that totalled US$38 billion. Grameen Bank reports that repayment success rates are between 95 and 98 per cent.

Read more about Microcredit.

Some articles on microcredit:

Microcredit Regulatory Authority
... Microcredit Regulatory Authority (MRA) is the central body to monitor and supervise microfinance operations of non-governmental organizations of the Republic of Bangladesh ... of Peoples’ Republic of Bangladesh under the Microcredit Regulatory Authority Act (Act no ...
Microfinance - Microcredit and The Web
... developed to expand the availability of microcredit through individual lenders in the developed world ... In comparison, the needs for microcredit are estimated about 250 bn USD as of end 2006 ... that these funds must be sourced locally in countries that are originating microcredit, to reduce transaction costs and exchange rate risks ...
Microcredit Summit Campaign
... The Microcredit Summit Campaign, an American non-profit organization, started as an effort to bring together microcredit practitioners, advocates, educational institutions, donor agencies, international financial ...
Microcredit - Improvement
... One of the principal challenges of microcredit is providing small loans at an affordable cost ... Rather, the principal reason for the high cost of microcredit loans is the high transaction cost of traditional microfinance operations relative to loan size ... Microcredit practitioners have long argued that such high interest rates are simply unavoidable ...
Coffee Kids - Locations of Projects and Partners
... Store Traditional Medicines and Environmental Education Guatemala ADESPA APROS ACMUV STIAP Microcredit Reproductive Health Care and Support for Widows Permaculture and ...