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Definition of microcredit

microcredit

/ˈmaɪ.kɹoʊˌkɹɛd.ɪt/
mi · cro · cred · it
Plural:microcredits
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microcredit Lexical Profile

microcredit Game Scores & Validity

• noun

1

The lending of very small amounts of money at low interest to impoverished borrowers or new businesses in developing economies who typically lack collateral and access to traditional banking.

Example

"Through a local microcredit program, she secured enough capital to buy a sewing machine and launch her tailoring business."

Synonyms
View all synonyms for microcredit

• Nearby Words

microcomputer
microcontroller
microcosm
microcredit
microcystin
microdose
microdosing

Word Origin & Etymology

Coined in the late 20th century from the prefix 'micro-' (from Ancient Greek 'mikros', meaning 'small') and 'credit' (from Latin 'creditum', meaning 'a loan'), popularized by economist Muhammad Yunus and the Grameen Bank in the 1970s.

Cite this Entry

Wordmom. (2026). Definition of Microcredit. In Wordmom Dictionary. Retrieved Nov 5, 2026, from https://wordmom.com/dictionary/microcredit
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