Microloans are short-term loans with smaller loan amounts that can be availed by self-employed professionals, startups, micro-enterprises, small businesses, and individuals with low capital requirements. Microloans are types of small finance or business loan of the smaller amount offered to micro-entrepreneurs or low-income group families who have little or no access to financial or lending institutions.

Purpose of Microloans

Microloans can be used for various business-related activities, such as meeting working capital requirements, maintaining cash flow, starting a new business, managing day-to-day expenses, paying salaries to staff, debt consolidation, etc. People facing trouble in availing business loans generally consider microloans or microfinance.