Microloans – summary definitions from the web
From wikipedia
Idea: Very small loans to impoverished people to spur entrepreneurship
To be eligible, applicants must lack:
- Collateral
Steady employment
Credit history
Loans in “developing countries” are generally provided to SHGs: Self-help group of invested parties. Usually 20 or fewer members.
SHGs generally pay interest rates between 12% and 24% per year based on the flat calculation method.
On the web, the principles of microcredit have been used to facilitate the development of peer-to-peer lending platforms.
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