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Category Archives: Loans
Microloans
Microloans are small loans advanced to low-income clients to encourage small business ownership. The recipients of microloans are generally individuals with little to no credit history, an unstable job history, and no assets to leverage as collateral. These individuals do not meet any of the standard qualifications for credit worthiness and would not qualify for traditional loans. Microloans are a component of the financial system known as microfinance. The system of microfinance operates under the belief that the poor should have access to high quality financial services, such as loans, savings and insurance.
The origins of microfinance can be traced back centuries starting with the fifteenth century monks who operated community-oriented pawnshops to the visionaries of the nineteenth century European Credit Union.
