What are the benefits of taking a microfinance loan?

Microfinance loans generally offer several benefits, especially for individuals or small businesses that might not qualify for regular loans offered by banks or Non-banking Financial Companies (NBFCs). Here are some common advantages:

• Interest rates on microfinance loans are often lower than those of other sources of financing available to low-income individuals or businesses, making repayment more manageable.
• Microfinance institutions often provide training or business advice along with the loan, which can help applicants succeed with their business ideas.
• Microloan repayment schedules are designed to accommodate small businesses' cash flow, making it easier for applicants to repay the loan easily and on time.
• Repaying a microloan builds a good credit history, which makes it easier to qualify for big loans in the future.