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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 ___ ______ _____ ____ ____.
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