Micro Loan

A micro loan is a very small loan given to someone who does not have the credit-worthiness to borrow from a traditional lending institution, such as a bank. These loans are often given to struggling entrepreneurs in an effort to help this person improve the quality of life for themselves, their family and their community. The micro loan, also referred to as micro credit, has been used in developing countries to enable poor people to generate income and get themselves out of poverty.

The micro loan continues to grow in popularity, and many mainstream credit institutions are beginning to see the micro loan market as a viable means of finance. In 2006, Muhammad Yunus, founder of Grameen Bank, won the Nobel Peace Prize for his work pioneering the micro credit market in Bangladesh. What impact micro credit could have for the lower class in the United States remains to be seen. For more information please contact us.