Microcredit, also called microfinance, is a bank loan for a small amount of money granted to people below the poverty threshold, low-income families, and small businesses. The ultimate objectives of this financial tool are to alleviate poverty and reduce income gaps, which have become more pronounced over the last two decades. In many countries, microcredit institutions have been focusing exclusively on women, who usually are economically dependent on their spouses, lack stable employment, and do not have any profession.

In modern banking, credit score monitoring is used for the efficient allocation of loans. People with stable employment and considerably high incomes receive good credit ratings implying they have a cash flow available for their future debt services. On the other hand, people lacking employment or any ...

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