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The Microcredit Summit of 1997 defined microcredit as any program that extends small loans to very poor people for self-employment projects that generate income. Definitions of what constitutes a "small loan" may vary from one country to the next, but many of the loans are as small as the equivalent of $30. Most loans are under $200. A typical loan might see a woman borrow $50 to buy chickens. The chickens would produce eggs and, eventually, more chickens — all of which she could sell in the marketplace. Every week, she and other local loan recipients will gather to make loan payments — tiny weekly installments that makes repayment much easier for the borrower. The clients also share success stories. Peer support is an integral part of the microfinance system. The loan will be fully repaid in six to 12 months and the money will then be re-lent to someone else in the community.
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