Microfinance

Microfinance: is a general term to describe financial services to low-income individuals or to those who don’t have access to typical banking service

Microloans: loans people money to help them get a kick start in a small business that they think will be beneficial to their village or town

-          Microloans also helps investments in infrastructure, education, and legal reforms

Gives people who don’t have money a loan so they can start a business

Help small business startup and stay running

Opportunity for the less fortunate people to have stuff they usually couldn’t afford

Allows poor people to build their assets

In many developing countries, most people are poor

Problems in developing countries that can be helped by microfinance: malaria, drought, and clean water

Bill Gates gives the most amount of charity in the world. Send out mosquito nets

Microlender: an organization that makes business loans to individuals who aren’t able to obtain financing from traditional lenders. Usually charge higher- than- average interest rates.

Disease, electricity, drought, etc. problems with developing countries

Microloan: person lends a small amount of money to a developing business. Once the business is running good the lender will receive their money back

Common uses for microloans: starting up new businesses, products for business, equipment, furniture, money, electricity, technology, roads, etc.