Microloans are short-range loans with small loan accounts that may be avail by startups, self-employed, small businesses, and micro-enterprises with lower capital needs. It is a kind of small finance offered to low wage group families and micro-entrepreneurs who have small access to lending institutions.

Purpose and objectives of microloans

Microloans may utilize several businesses regarded as activities like maintaining cash flow, meeting working capital needs, starting a new business, maintaining cash flow and managing day-to-day expenses, and debt consolidation.

Objectives

• To reinforce the SHGs (Self Help Groups) and utilize them for the economic growth of the nation.
• To encourage socio-economic growth among under-banked and unbanked families.
• To promote and support startups and female entrepreneurship throughout the nation.