Accion U.S. Network, the U.S. subsidiary of the Accion international, is of one of the most popular microfinancier in the United States as of 2015, according to Wikipedia. Capital Good Fund is another good example of microfinance loan lenders. Microcredit facilitates the creation and growth of businesses.
Grameen Bank in Bangladesh is considered the oldest and perhaps the most widely known microfinance institution in the world, explains Wikipedia. The bank established its first U.S. branch in Queens, New York, in 2008, according to The Philanthropic Enterprise. Grameen has since expanded to other areas including Upper Manhattan; Brooklyn; Omaha, Nebraska; and Indianapolis, Indiana.
There are more than 500 million people who have benefited from microfinance operations according to the World Bank estimates, states Investopedia. Most of the modern microfinance institutions operate in developing worlds, notably Africa, Asia and Latin America. This has greatly been attributed to higher interest rates in developing countries, providing the microfinance groups with a higher chance of becoming self-sustaining, states The Philanthropic Enterprise. The number of Americans who have benefited from microloans as of August 2012 is 170,000.
Microfinance is a general concept referring to financial services to low-income people or those lacking access to the mainstream banking services, explains Kiva. The principal objective of microfinance loan lenders is to attempt to address a myriad of problems affecting the poor, states Wikipedia. Several platforms have been established to connect lenders to microentrepreneurs such as Kiva, Zidisha, United Prosperity and the Microloan Foundation.