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Credit agencies that provide microcredit play a crucial role in the domain of credit and finance, particularly in addressing the financial needs of low-income individuals and small entrepreneurs who are typically excluded from the formal banking system. Microcredit refers to the extension of small loans to borrowers who lack collateral, steady employment, or a verifiable credit history. These loans are primarily designed to promote self-employment, boost income generation, and enhance financial inclusion. Microcredit is typically offered by microfinance institutions (MFIs), non-governmental organizations (NGOs), cooperatives, and specialized banks. These credit agencies function with the objective of providing financial services to the underserved and marginalized sectors of the economy. Their operations are grounded in the principle of financial empowerment and the belief that access to credit is a fundamental right __________ _________ _____ ___ ___ _______ _________ ______ ____.
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