microloan
A microloan, or microcredit, is a small loan extended to individuals or microenterprises that lack access to traditional banking services. The aim is to enable entrepreneurship, income generation, and financial inclusion, particularly in underserved or low-income communities. Microloans are typically modest in size, often ranging from tens to thousands of dollars, and are usually repaid over short to medium terms in regular installments.
The modern microfinance movement began in the 1970s in rural Bangladesh, spearheaded by economist Muhammad Yunus
Lending models vary. Many microloans employ group lending or social collateral, where peer monitoring supports repayment.
Impact and criticism. Microloans can improve incomes and foster entrepreneurship, particularly for women, but evidence on