Microcredit organizations exist worldwide. These are institutions whose sole function is to lend. Microcredit organizations provide lending services to individuals and small and medium-sized enterprises. Apart from this function, they have no other field of economic activity. The difference with other banks is that these organizations do not lend to the extent that large banking corporations can.
Nevertheless, these amounts may be sufficient to address specific life issues of the individual as well as to start a small business. Microcredit organizations provide lending services at significantly higher interest rates than regular banks, but the process of obtaining loans is much faster. In addition to the lending function, micro-credit organizations do not provide other banking services.
