To obtain a microcredit loan, a person typically must verbally promise to pay back the money.
Can a small financial bank borrow money?
Although both types of banks offer loans, the smaller banks should provide 75% of the loans in the priority sector.
Does microfinance require collateral?
Small loans usually do not require collateral, and the interest rate assessed on the loan will depend largely on the credit history and financial profile of the borrower. The credit bureau may charge administration fees to process the borrower's loan or facilitate the collection of the investor's payment.
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