Microloan

A microloan is money that is given to a person who needs it to start a small business or to improve their existing business. This money is usually given by a bank, government, or nonprofit organization and is much smaller than the loans given to big businesses. It is called a “micro” loan because it is a small amount of money compared to the big loans that adults may need to buy a house or a car. The person who gets a micro-loan must pay back the money they borrowed plus a little extra for the loan to be successful. Microloans are often given to people who are in poverty or have very little income. These loans can help them start their own business and make money for themselves and their families.