Microcredit
A microcredit (sometimes called a micro-loan, or microloan) is a type of small loan that can be given to people experiencing poverty, who are not able to get loans through the banks around them for different reasons.
Very often, people getting a microcredit are illiterate: they cannot fill out forms to apply for a regular loan. Microcredits also work differently: the interest to be paid is usually much higher than with a regular loan, often it is over 20%. [source?] The interest usually also has to be paid more often. Microcredits have been criticized, because people taking them often end up in a situation where they cannot repay their debt.
Microcredits are given by special banks or cooperatives like Oikocredit. [source?]
