What is Micro-Credit?
Micro-credit is the extension of very small loans (microloans) to the unemployed, to poor entrepreneurs, marginalized people and to others living in poverty who are not considered bankable. These individuals lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit. Micro-credit is a part of microfinance, which is the provision of a wider range of financial services to the very poor such as insurance and savings.
