Micro-lending

Micro-lending is the practice of providing small loans to individuals or small businesses who typically lack access to traditional banking services. These loans help entrepreneurs fund start-ups, expand operations, or manage cash flow, fostering economic development and poverty reduction. Micro-lenders often operate through community-based organizations or online platforms, emphasizing personalized support and repayment flexibility. Because the amounts are smaller, micro-lending risks are lower individually, but collectively, they can significantly impact local economies by empowering underserved populations to improve their livelihoods.