What is the difference between lending and microfinance?
What is the difference between lending and microfinance? Conversely, Microcredit alludes to a small loan provided, at a low-interest rate, to the persons of below poverty line to make them self-employed, i.e. to help the small entrepreneurs start their own business....Comparison Chart.Basis for ComparisonMicrocreditMicrofinanceIncludesCredit ActivitiesCredit and non-credit activities What is the difference between microfinance lending and commercial bank lending? The need for collateral as security is considered to be the foremost distinction between commercial banks and MFIs'. While commercial banks require the borrower to pledge loan collateral, there is no such requirement for MFI loans. The process of collection by...