What is the meaning of the term microlending?

Answer 1

Microlending refers to the practice of providing small loans to individuals or small businesses, often in developing countries, who lack access to traditional banking services. These loans typically have lower interest rates and are intended to help borrowers start or expand their businesses, improve their livelihoods, or meet urgent financial needs. Microlending is often facilitated by microfinance institutions that aim to promote financial inclusion and empower underserved populations.