Today, our topic is microfinance.
Here is the Vocabulary: It is a much longer list today. Listen closely, and listen to this section a few times if you need to!
Microfinance: this refers to the financial services provided to low-income individuals or groups who are typically excluded from traditional banking.
Working capital: money that the entrepreneur can use for day-to-day operations, or purchase transport or equipment.
Microcredit: A part of the field of microfinance, microcredit is the provision of credit services to low-income entrepreneurs. Another way to say microcredit is microloan.
Collateral: Something offered as security for the repayment of the loan.
Unbanked: A term used to describe the world’s working poor who are outside of the formal banking sector.
Microentrepreneur: Micro entrepreneurs are people who own small-scale businesses that are known as microenterprises.
Financial Inclusion: Financial inclusion happens when people have access to a range of banking products at affordable prices.
Group Lending: Group Lending happens when a group of people makes a collective repayment promise.
Sponsors: An individual who supports a borrower.
I also want to remind you of a word you learned on last week's podcast “Pledge”. Remember? To pledge means “to promise”.
Image credit: By Brett Matthews - Own work, CC BY-SA 3.0,