I’ve been googleing but I’m trying to pull myself out of a rabbit hole. I don’t see these institutions prominent in my country – where are they? And the pros and cons of them seem to be in theory? Like there aren’t news stories accompanying them
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Microlending is generally found in very low income developing countries, especially in Africa. When you think microloans, usually think poor areas of Africa
These are places that give small loans, because the value of them is relatively high in very low in come areas. They would usually be about $100-$200, yup, thats it. That may seem like nothing to many people, but in low income areas, that can be a lot of money, and can be enough to help people do disporportiatly large things, such as starting a whole business or expanding theirs. $200 can a be a lot of money in poor communities in Afirca. — Many of these loans also go to women entrepreneurs as well, which for some places in the world, it is much more difficult for women to start businesses, so this helps bridge that gap too
Microloans are viewed as an inexpensive way to provide a lot of benefit to these people who need just a little money to make a difference, not a lot, and their rate of repayment is generally very high. They’ve been quite a success, but they simply aren’t that sexy and don’t get a lot of media attention
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