Microloans or Microcredit are financial innovations designed to
provide the very poor with the means to start or maintain small
businesses. These loans are very small and are designed to
stimulate economic development. The concept has been a
successful alternative in third-world countries like Bangledesh
to traditional loans and charity. Personally, I really like this
idea. Regular banks generally wouldn’t go near these borrowers
and it seems that social assistance so often enables people to
remain impoverished instead of encouraging them to be more self-
sufficient. I strongly believe in the “teach a man to fish”
principle. Microloans seem to give those with some initiative a
hand without creating a crutch. Give a man a fish and you feed
him for a day. Teach a man to fish and you feed him for a
lifetime. ~ Chinese Proverb How microloans work. Most
microcredit loans are around $30 to $50. They are rarely more
than $200. However, this can be enough for a person to buy the
supplies they need to start a small bus