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definition print
what is microcredit?
much of the current interest in microcredit stems from the microcredit summit (2-4 february 1997), and the activities that went into organizing the event. the definition of microcredit that was adopted there was:
microcredit (mi-[*]kro’kre-dit); noun; programmes extend small loans to very poor people for self-employment projects that generate income, allowing them to care for themselves and their families.
definitions deffer, of course, from country to country. some of the defining criteria used include- size – loans are micro, or very small in size target users – microenterpreneurs and low-income households utilization – the use of funds – for income generation, and enterprise development, but also for community use (health/education) etc. terms and conditions – most terms and conditions for microcredit loans are flexible and easy to understand, and suited to the local conditions of the community.
source : the virtual library on microcredit
 
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