What is a 'Microcredit'

An extremely small loan given to impoverished people to help them become self employed.

Also known as "microlending" or "microloan".

BREAKING DOWN 'Microcredit'

Renee Loth wrote an article in 2002 for the Boston Globe entitled "Women Entrepreneurs," which explores how this type of loan possibly originated. In the article Loth suggests the system started in Bangladesh in 1976, when an economics professor loaned a group of women $27 to finance their own small business. Amazingly the women repaid the loan and were able to sustain the business.

RELATED TERMS
  1. Term Loan

    A loan from a bank for a specific amount that has a specified ...
  2. Call Loan

    A loan provided to a brokerage firm and used to finance margin ...
  3. Direct Consolidation Loan

    A loan that combines two or more federal education loans into ...
  4. Loan Register

    A journal that chronicles the recording of time loans. The loan ...
  5. Standing Loan

    A type of loan where payments are made of interest only. Repayment ...
  6. Indirect Loan

    Any loan that is transferred from a dealer who originated the ...
Related Articles
  1. Personal Finance

    What Is Microlending And How Does It Work?

    Microlending can produce great return on investment for the lender while benefiting borrowers who wouldn't otherwise secure funding.
  2. Small Business

    Improve Your Karma With Microlending

    Not all businesses are self-sustaining - many rely on microlending in order to survive.
  3. Financial Advisor

    Why Women FAs Prefer Some Indie Brokers

    Here's what some firms are doing right when it comes to recruiting and retaining female advisors.
  4. Retirement

    Top Retirement Saving Tips For Women

    Women face some unique challenges when it comes to saving for retirement.
  5. Personal Finance

    Do Women Need ‘Women-Focused’ Financial Advisors?

    Their life experiences are different from men’s – and their earnings tend to be lower – but does that mean women should be treated differently?
  6. Financial Advisor

    Top 5 Ways Advisors Can Appeal to Women

    Female clients present an enormous potential market for advisors. Here are some ways advisors can make their practice more appealing to them.
  7. Financial Advisor

    These Investors Needs More Advisor Attention

    Women live longer than men and their post-retirement finances are in jeopardy. A new report by the National Institute for Retirement Security shows why.
  8. Financial Advisor

    3 Common Financial Mistakes for Women to Avoid

    Find out why of more than 4,000 Americans, women are more likely than men to have no savings or investments.
  9. Personal Finance

    Women And Finances: Is There A Gender Bias?

    Uncover some very complex reasons for female gender biases in the finance world.
  10. Personal Finance

    Getting Government Loans For Your Small Business

    Would a government loan provide a more cost-effective way to finance your business? See whether your company qualifies for a government loan.
RELATED FAQS
  1. Are secured personal loans better than unsecured loans?

    Read about the differences between secured loans and unsecured loans and how they are used. Learn about forms of collateral ... Read Answer >>
  2. What's the average salary of a loan officer?

    Read about the average yearly salary for a loan officer. Learn about what these professionals do and what determines their ... Read Answer >>
  3. What are the pros and cons of life insurance policy loans?

    Find out the pros and cons of borrowing against your life insurance policy to help you decide if this loan type is the right ... Read Answer >>
  4. What are the differences between delinquency and default?

    Find out more about loan delinquency, loan default, and the difference between a loan borrower defaulting and being delinquent ... Read Answer >>
  5. What are the pros and cons of consolidating my student loans?

    Read about the possible advantages and disadvantages of consolidating your student loan debts, and find out how to determine ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center