Microcredit is a financial innovation that refers to various kinds of small loans and financial services meant for low income households. The borrowers of microcredit usually lack collateral, steady employment and verifiable credit history and hence fail to qualify for regular bank loans. Microcredit steps in to bridge the gap and brings affordable loans within access of even to those left out of the main steam credit system through banks and other financial institutions.
Modified on: Wed, 9 Apr, 2014 at 2:23 PM
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