A microloan is a small loan, generally up to $50,000, made to startups and emerging small businesses. These loans are offered by nonprofit organizations known as microlenders. Microloans typically have repayment terms of up to seven years and offer favorable interest rates that are lower than those available through online lenders.
What Is a Microloan?
A microloan is a financing product aimed at startups and small businesses that are unable to obtain traditional financing. Microloans are offered by community-based nonprofit intermediary lenders and are generally aimed at specific demographics.
