What does mean 'microcredit'?

Question

What does mean 'microcredit'?

Answer 1

First made famous in Bangladesh, Africa  etc and is spreading all over 3rd world countries. Microcredit mmm...

You are from a poor family etc and have nothing... Loans are given to start small single or family businesses such as weaving etc like the old days of the cottage industry. Can be from $50.00 to $300.00 small amounts of money so the recipients can make a little extra or possibly their whole income to improve their lives and take them from the bottom rung of poverty. This has proved very successful and is increasing exponentially around the globe... and the repayment is better percentage wise then in North America

Tee

Answer 2

A microcredit is a loan of a small amount, particularly targeting small entrepreneurs that are excluded from banking services. These are offered by the microfinance institutions (NGO, banks, non banking financial institutions) mostly in developing countries but you can also find the principle in Western countries.

Microcredit is the most common of the microfinance services, that encompass other financial services (microinsurance etc.) adapted to the the needs of people that can not provide usual guarantees to banks

Have a look at the microfinance gateway web site for more info.

Hope this helps