Microcredit and microfinance

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Microcredit refers specifically to small-scale loans and the credit needs of clients, while microfinance covers a broader range of financial services such as savings, insurance, housing loans and remittance transfers.

A local microfinance institution may offer:

  • Microfinance plus development activities such as entrepreneurial and life skills training, and
  • Advice on topics such as health and nutrition, sanitation, improving living conditions and the importance of educating children

Learn how a self-help group in India set up their own microfinance program to provide alternative finance options to others in their community who were not being served by banks.

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Select the video Play () button (above) to see how a woman’s self-help group provides financial services to deserving individuals in their community.