Microfinance is the provision of financial services ranging from credit, savings and insurance for low income individuals who were in the past excluded from formal financial institutions.
Traditionally, microcredit is characterized by high interest rates and no requirement for physical collateral. Rather, joint liability between borrowers in a lending group is used to ensure repayment of loans.
The characteristics and requirements of microfinance programs are continuing to evolve in different countries over time.
Traditionally, microcredit is characterized by high interest rates and no requirement for physical collateral. Rather, joint liability between borrowers in a lending group is used to ensure repayment of loans.
The characteristics and requirements of microfinance programs are continuing to evolve in different countries over time.
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