Microcredit

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Related to Micro-Credits: Microfinance

Microcredit

A form of lending that originated in the 1970s with small loans made to very small enterprises in Bangladesh, called micro-enterprises, with the intention of alleviating high poverty levels. Microfinance institutions (MFIs) issue micro-loans that have higher-than-normal interest rates meant to cover the high costs associated with issuing small loans. Given that the purpose of microcredit is to be a poverty relief mechanism, individuals with low credit scores who lack capital and steady employment are then able to receive loans to develop their enterprises. See: Microfinance

Microcredit

The practice of making loans to extremely poor persons to help them rise from poverty through entrepreneurship. That is, one may make a loan of, say, $25 which gives someone the start-up capital necessary to make something small to sell. Microcredit loans are usually either interest-free or carry interest that does not compound. Additionally they offer flexible repayment plans; generally one is asked to pay anything one can so long as one pays something. Microcredit is most common in the developing world; it started in Bangladesh in the 1970s. See also: Grameen Bank, Mohammed Yunus.
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He said that his visit to Tunisia next week, aims to set up the bank's action programme in Tunisia for the next three years, highlighting the priority issues which will benefit of the bank's support, namely the Islamic finance, micro-credits and offer of a decent housing to underprivileged categories.
AaAaAa The loan aims notably to boost micro-credits benefiting the agricultural sector and to help micro-credit associations targeting rural population.
We already helps more than 9 million people a year to find jobs and we will create a new €500 million micro-credit facility to support entrepreneurs and at a national level we want to see 5 million young Europeans have access to apprenticeships," Barroso said.
This was the background to the start of a programme offering micro-credits in Adeta and its neighbouring villages.
To date, she has received 6,000 pesos in micro-credits from the Mexico City government, and it appears that additional funding is on the way.
The first agreement amounting to 50 million dinars will be towards financing the integrated agricultural development projects in the El Kef and Kasserine regions and the second agreement is for support programme to micro-credits given by the Tunisian Solidarity Bank.
Summary: The National Agency for Micro-credits Management (ANGEM) adopts, under its new strategy, ''quality-based funding'' of, said Sunday in Laghouat (400km south-west of Algiers), an official of the employment supporting agency.
The government intends to initiate a law establishing upper limit of interest rates on micro-credits, said Prime Minister of Kyrgyzstan Omurbek Babanov during the meeting with residents of Uzgen district in the framework of his business trip to Osh region on May 17, reported Tazabek.
By virtue of this accord, the French government grants Tunisia 800,000 dinars to be distributed by Enda Inter-Arabe organisation under the form of micro-credits to 450 Tunisians who returned from Libya, in order to help them set up their own projects.
The respective memorandum of understanding was signed between the Kyrgyz government and the Kumtor Gold Company on micro-credits for crop production, cattle breeding and delivery of services in rural areas on April 23.
UNHCR actions will include maintenance and equipment of public institutions and granting of 220 micro-credits with a ceiling of 5,000 dinars per credit.
When they prepare bilateral credit agreements, they stipulate the terms of micro-credits - sum, interest rate, terms of repayment.