Microcredit is a common form of microfinance that involves an extremely small loan given to an individual to help them become self-employed or grow a small business. These borrowers tend to be low-income individuals, especially from less developed countries (LDCs). Microcredit is also known as "microlending" or "microloan."
Microcredit is a method of lending very small sums to individuals to start or expand a small business.
Microcredit borrowers tend to be low-income individuals living in parts of the developing world; the practice originated in its modern form.