A person or bank that makes loans in small amounts. In the developing world, microlenders often make loans of only a few dollars to facilitate the start of small businesses. In this case, the interest can be a flat fee that does not compound. In the developed world, microlenders make loans of $5,000 to $25,000 and charge higher interest rates than they would for larger loans.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A company or organization that makes small loans to businesses that are generally unable to obtain financing from a regular source. Microlender loans often range from $5,000 to $25,000 at interest rates higher than those charged by commercial banks.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.