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What is Microcredit?

Microcredit is also known as Micro finance; it means one of the methods of increasing credit in the form of small loans which is having no collateral security. The main motive of this loan is to support small organization. It provides financial services in the form of saving accounts especially to poor people. In short it is the short financial services provided to needy and poor people who are unable to complete paper formalities in big bank.

Benefits ofMicrocredit?

Some of the benefits of Microcredit include,

  • These are reliable and fast loan
  • These are small loan whose main motive is to help the people with low income group
  • These finance will help the business in starting up along with expanding and purchasing of important assets of an organization
  • In other words we can say that it is a kind of small loan which is provided to those people who is not having enough money for start up in business.
  • Loan is granted to those people who are unable to take big amount of loan from the bank.
  • In this kind of finance, amount is granted on the basis of trust rather than keeping any collateral security for the same.

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