Microfinance is a unique way to give people money they need in denominations usually about $1000. You may not realize that microfinance is even a thing, but microfinance is something that is getting projects off the ground around the world because the loan is only a small amount of money. The microfinancing is often found through fundraising efforts around the world, and the organizations that are handing out these loans are raising enough money to provide thousands of loans in these small amounts.
What Are They For?
Microfinance is great for people working in third world countries who need just a small amount of money to get their business going. This is usually helpful with small businesses in Africa because these are local artisans who need just a little money to get going. These loans work well in other parts of the world when something like a nonprofit needs a small amount of money to incorporate or get the technology they need to operate.