Microcredit

Microcredit involves extending small loans to entrepreneurs or craftspeople who would not qualify for traditional bank loans, often because they are too poor and do not hold sufficient guarantees. Microcredit continues to grow primarily in developing countries where it helps get small projects off the ground, thereby boosting economic activity and wealth creation. That said, microcredit is also practised in developed countries and countries in transition. The concept is part of a broader approach which includes additional financial tools such as savings, micro-insurance and other microfinance products.