How Do You Spell MICROLOANS?

Pronunciation: [mˈa͡ɪkɹə͡ʊlˌə͡ʊnz] (IPA)

Microloans, spelled /ˈmaɪkrəʊləʊnz/, are small loans usually given to low-income individuals or small businesses. The word "micro" comes from the Greek root "mikros," meaning small, and "loan" is an English word. The spelling uses the prefix "micro" and the word "loans" combined. The IPA phonetic transcription of this word is "mʌ’ɪkrəʊləʊnz." Microloans have become an important tool in fighting poverty and promoting economic growth in developing countries. They are often provided by nonprofit organizations or governmental agencies.

MICROLOANS Meaning and Definition

1. Microloans refer to small-scale loans that are granted to individuals or businesses with limited financial resources and inadequate access to traditional banking services. Often offered by microfinance institutions (MFIs) or non-governmental organizations (NGOs), these loans are designed to assist borrowers in starting or expanding their business ventures, supporting low-income entrepreneurs, and fostering economic development in underserved communities.

   Microloans typically have a low principal amount, ranging from a few hundred to a few thousand dollars, and are repaid over a relatively short period, usually a few months to a few years. They are accessible to borrowers who lack collateral or a credit history, as the loan approval is mainly based on the borrower's character, business plan, and potential to generate income. The funds obtained from microloans are often utilized to purchase equipment, raw materials, or supplies, and to cover operating expenses or other business-related needs.

   Microloans typically carry relatively low interest rates compared to conventional loans, reflecting the aim of promoting financial inclusion and supporting grassroots entrepreneurship. The intent is to empower individuals who are excluded from formal financial systems, enabling them to build sustainable livelihoods, improve their standard of living, and uplift their communities.

   Overall, microloans play a critical role in poverty alleviation efforts, fostering entrepreneurship, and promoting inclusive economic growth, particularly in developing countries where traditional banking services may not be easily accessible to marginalized populations.

Common Misspellings for MICROLOANS

• microzoas

Etymology of MICROLOANS

The word "microloans" is a combination of "micro" and "loans".

The term "micro" comes from the Greek word "mikros", meaning small. In this context, it refers to the small amounts of money lent as loans.

The term "loans" comes from the Middle English word "loan", which derived from the Old Norse word "lán". It refers to the act of giving something, typically money, to someone with the expectation that it will be returned.

Combined, "microloans" refers to small loans that are provided to individuals, usually from lower-income backgrounds or entrepreneurs in developing countries, to help them start or expand a business when they have limited access to traditional banking services.