Microcredit

(redirected from microlending)
Also found in: Dictionary, Encyclopedia, Wikipedia.

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.
Mentioned in ?
References in periodicals archive ?
Once exploring the launch of a federal credit union in North Carolina, microlending bank Grameen America will receive a $450,000 grant to help spur small business growth in low-income communities there.
Overall, the Holy Child Jesus sisters have put 3 percent of their general portfolio into microlending. "We know that the people who get the money are usually the most destitute," Lonigan said.
After 20 years of microlending, Grameen Bank has not only helped nearly half of its borrowers get above the poverty line, but its default rate is lower than that of most traditional banks.
The Ministry of Labor and Social Protection of Population is responsible for the fourth direction Expansion of microlending. In this regard, it is planned to make adjustments to the Productive Employment and Mass Entrepreneurship Development Program for 2017-2021.
M2 EQUITYBITES-December 20, 2017-Longfin Acquires Blockchain-Based Microlending Solutions Provider Ziddu in Stock Transaction
Beijing: China's central bank has issued its harshest set of restrictions yet to rein in the country's online microlending businesses, putting on a tight leash an industry.
The problem in Cambodia is believed to have been sparked by microlending. The median loan debt in Cambodia is now at USD3,370 per household, which is the highest average for small loans in the world.
Starting in the mid-1970s by making small loans--much of which was personally funded--to destitute basket weavers in Bangladesh, Grameen Bank has advanced to the forefront of a burgeoning world movement to eradicate poverty through microlending. In 2006, Professor Yunus and Grameen Bank were jointly awarded the Nobel Peace Prize.
DTI pushes amendments to Magna Carta for MSMEs !-- -- MANILA, Philippines The Department of Trade and Industry (DTI) is pushing for legislative measures to amend the Magna Carta for micro, small and medium enterprises (MSMEs) and institutionalize the microlending program Pondo sa Pagbabago at Pag-asenso (P3) under the new Congress.
From 2008 to 2015, he worked in the government of the Ningxia Hui Autonomous Region, where he applied new approaches to agricultural publications and rural tourism, and provided startup microlending to young and female farmers.
'It's almost twice lower than [the interest rates] currently offered in microfinance,' Mabiasen said, as most microlending schemes by cooperatives and nongovernmental organizations call for a 3.5 to 4.5-percent interest a month.
Crowdfunding and microlending projects like Kickstarter and Kiva are shifting lending to be a community-based endeavor, both offering fairer terms to recipients and giving the community opportunities to invest in people and projects they find promising.