Definition
microcredit
noun
- Small loans provided to low-income individuals or entrepreneurs who lack access to traditional banking services, typically used to start or expand small businesses.
Usage: Often used in development economics and international finance contexts; Commonly associated with poverty alleviation and financial inclusion initiatives
Examples
- The nonprofit organization provides microcredit to women entrepreneurs in rural areas.
- Through microcredit programs, small business owners can borrow money without collateral.
- Microcredit has become an important tool for reducing poverty in developing countries.
- She received microcredit to start her tailoring business in the village.
- Banks often refuse to lend to low-income borrowers, which is why microcredit institutions exist.
- The microcredit initiative helped hundreds of families escape extreme poverty.