Microcredit is a very useful tool for people who have difficulty obtaining credit from a bank. It is aimed at unemployed people, entrepreneurs or living in a certain poverty. Normally, a bank will not give you a charge if you do not have a well-paid job or anything to your name. The idea is not to give people huge amounts of money but rather a small amount because there is a good chance you will never get the money back if it is a large amount . Most of these people do not have much means to repay their loans because their financial history is not very good. They are also known as beginner entrepreneurs because this loan could help them start a successful business. The companies that provide these loans generally do not aim for profit, but they will charge a certain amount of interest. This is so that they are able to operate the business and pay the salaries of its employees. They are not there for money but to help people in need. After all, this concept is mainly used in developing countries like Bangladesh. Now the loan is not limited to developing countries, it is also available in developed countries like ours. While someone living in a developing country only needs a $500 loan to start a business, a poor person may need around $20,000 in the United States to start a business. This is mainly due to the higher cost of living in most developed countries. They not only offer money to start a business but also give knowledge and training on how they can make the business successful. This is a good idea because without it they would be at higher risk of not getting a return. Now, to be eligible, the business must have fewer than 5 employees in total and can only request an amount less than $35,000. No... middle of paper ...... wants to get money for her studies, it will probably be a long time before anyone gets the money back because she is still in school and has to support of his 5 brothers and sisters. and also 2 parents who do not have a job. His ambition to become a dentist is not selfish, however; she does this to help her community by opening a clinic in the public sector. She needs $5,275 and has only raised 30 percent of it so far. Its payments are due from March 2017, which is 111 months from now. This doesn't sound like a loan that anyone wants to get money back from, but rather like a charity meant to help someone who actually needs it. She has an irregular payment schedule, meaning she doesn't have a set time when payments will be due each month. Its partner FUNDAPEC charges a minimum interest rate of 13% and has a very low profitability rate. They are obviously there to help, rather than for the money.