Microcredit

Microcredit refers to small loans provided to individuals, typically in developing countries, who lack access to traditional banking services. These loans empower entrepreneurs, particularly women, to start or expand small businesses, improve their livelihoods, and contribute to their communities. Microcredit aims to alleviate poverty by providing financial resources that enable people to become self-sufficient. It often involves community-based lending groups, where borrowers collectively endorse each other, fostering trust and accountability. While microcredit can help individuals achieve financial independence, it is essential to consider the challenges and responsibilities that come with borrowing.