Question

Small loans made to very poor people and intended for self-employment projects that generate income are known as __________ loans.

Answer 1

Answer: Microcredit

Small loans made to very poor people and intended for self-employment projects that generate income are known as microcredit loans.

Explanation:

Microcredit loans refer to small financial loan given to individuals to help them launch or start small businesses or engage in other economic activities in order to overcome poverty. It aims at helping only those who need a small amount of capital to facilitate their microenterprise.  It is also known as microloan or micro lending. It is often arranged or organized around solidarity groups or village bank.

Answer 2

Small loans made to very poor people and intended for self-employment projects that generate income are known as micro credit loans.  This is to help the very poor people  or families to start a small business that can help them to generate their own income.