Meaning & use

microloan

noun·Academic

A very small loan, typically given to entrepreneurs who lack access to traditional banking.

See it in a sentence

A microloan of two hundred dollars helped her start a small tailoring business.

The nonprofit organization provides microloans to farmers so they can buy seeds and equipment.

A note on using this word

Microloans are central to microfinance, a movement aimed at reducing poverty through small-scale credit.

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