Definition for : Microfinance
Micro-finance is aimed at people who do not have access to traditional Financial system, in other words, at the very poorest members of society. This definition covers a large section of the population of emerging economies as well as the most underprivileged members of western societies. Micro-finance works on the basis of the same logic as the traditional system. The difference lies in the size of the loans granted. The average amount of a micro-loan in Asia or Africa is around 300 (and can be for as little as 10), in Eastern Europe it is usually just over 1,000 and in Western Europe around 2,500.
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