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Small Loan

Small loans refer to micro loans provided by self-help groups and microfinance institutions (MFIs). They are meant to boost entrepreneurial activities of the poor who do not have access to traditional banking system.

Small loans are borrowed by poor entrepreneurs for small businesses like cattle rearing, diary, running kirana stores, etc. MFIs access borrowers through self help groups and field people. Interest charged on small loans is higher than that charged by banks due to high cost and risk of these loans.

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