Microfinance

Microfinance describes loans that are usually made to individuals or small enterprises and is more common in developing countries where individuals may have difficulty accessing finance given limited assets. Microfinance can be used to support smaller purchases, such as a solar lantern or a solar panel with a battery and can leverage social networks as a way of ensuring payback. Microfinance can also be facilitated through online social platforms, including through social sharing and crowd funding platforms, as well as via formalized banking institutions that focus on microfinance.