Sometimes bank is not ready to give a loan. Borrowers of microcredit are typically people of low income households, who require working capital and credit. The investment you make as a social investor is usually towards the working capital of an individual whose occupation is farming, livestock rearing, tailoring or other micro and cottage industries.Microcredit organizations offer loans with term of repayment as 12 to 18 months depending on the size of loan. Only after the repayment of the first loan, can the borrower apply for next loan. 90% of investors are individuals. But contrary to what people believe, disadvantaged are sincere in repaying their loans.
