What is micro -only?
MicroLEnd is an interesting approach to attempting to encourage self -sufficiency and end of poverty, especially in developing countries. The idea may have been first launched in Bangladesh and is now popular. Basically, a very small amount of money is usually lent to very poor people who currently have a small way to pay back loans. These people are often called nascent entrepreneurs, because with a small loan they can be able to start a successful business, eventually repay their loan and dramatically increase income status. A certain amount of interest is charged to make the company in functioning, but do not confuse non -profit types to make a huge amount of money for loans. Instead, we only hope to help people who would not otherwise be able to get a loan, and this help, even if small and a minute, can make huge differences.
Although the MV of developing countries operates in places such as the US, ajorites of microfinance companies. The problem is that the loan amounts can be in countrieshigher with higher living costs. These creditors who work in poorer countries can prolong smaller amounts much further.
Some micro -operation companies depend on loans from private individuals. One of these companies is Kiva. Individuals can lend money for additions to $ 25 (USD) and select entrepreneurs from the KIVA database for financing. Kiva boasts a high level of repayment of their loans, but individuals have a low risk when lending. However, if the amounts of loans are small, people can consider their loans to be a charity and don't worry too much if they don't pay the money.
It seems that there is a preference in microfilization to lend money to women. Women can be able to start with the lower shops that help them increase their income, are often considered more reliable when it comes to repayment of loans. Not everyone is able to repay the microloan and some people dooNEC lending from more than one agency and then using loans from one agency repay loans or payments from another. There may also be some disgusting aspects for this lending, especially if it is dominated by banks that work for profit in less developed areas. People may be at risk if they do not pay loans on time, although many organizations work completely renowned.
Some critics of micro -diet say that there is a problem with the privatization of these small loans to others. If microloans become very successful, it could deter governments from the development or maintaining programs designed to help very poor. There are also concerns about the way some micro -level agencies work because they may have fewer regulations than any government programs of lending and tendency to abuse the system or those looking for loans may exist.