What are Microloans and Why Does Strivers Provide Them to Students?
Microloans are incredibly powerful tools in eradicating world poverty; by providing opportunities individuals who have limited access to credit through traditional financial streams, those individuals are able to build businesses that would otherwise not exist. For example, a man who makes wooden stools for a living might not be able to acquire a standard loan to purchase a chisel set that will allow him to produce better stools and augment his personal income; a microloan supplied to the same man would allow him to purchase the chisel set and expand his business while borrowing otherwise inaccessible money at a reasonable cost of capital.
