What is the difference between a microloan and a traditional loan

What is the difference between a microloan and a traditional loan Introduction: The World of Loans Hello everyone! Welcome to our channel. When it comes to financing, loans are an integral part of the equation. They provide individuals and businesses with the necessary funds to pursue their goals. Today, we'll be focusing on two types of loans: microloans and traditional loans. While both serve the purpose of offering financial assistance, they differ in several aspects. Let's dive in! Microloans: A Closer Look Microloans, as the name suggests, are small loans typically granted to individuals or businesses with limited financial resources. They are often used for specific purposes, such as starting a small business, purchasing equipment, or funding a project. Microloans are usually offered by non-profit organizations, community development financial institutions, or online lending platforms. One of the key features of microloans is their accessibility. They are designed to cater to individuals who may not qualify for traditional loans due to factors like a low credit score or lack of collateral.