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s2008m [1.1K]
2 years ago
15

5. Describe how microlending agencies causes social change around the world. What are your thoughts about these agencies?

English
1 answer:
Nuetrik [128]2 years ago
7 0

Microlending is a type of lending that occurs between person to person (versus financial institution to person).  Microlending agencies are areas where microlenders and those seeking loans can come to find each other.  The loans are provided, mainly to potential business entrepreneurs in poor countries (or Third World countries).  Microlenders provide loans to individuals financial institutions generally would not because of the risk that exists that loans would not be paid back.  Microlenders exist because they can potentially stand to make more money in interest lending than they could from interest earned in a regular savings account.  Microlending agencies can certainly be seen to contribute to social change around the world because without them, businesses might not ever get started due to lack of funding, and communities could stagnate because of the development that would never take place.  Microlending, around the world, contributes to the social change of poor communities by allowing for progress to occur where, otherwise, there would be no progress possible.






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