Microcredit Institutions Essay

However, they can still be useful in promoting growth and developing by ensuring that the beneficiaries are given prior training about the investment before accessing the loans. This will ensure they can invest wisely without wastage hence making a fortune out of little investments. Further, microloans can also be used in reinforcing of small businesses that are already in operation but not to entirely start businesses. Microloans can also be effective if taken by a group people who have similar agenda and interest in one big business project that upon completion will begin generating income (Berlage, 2015). In order to increase the effectiveness of microloans, critical strategies can be developed such as establishing more friendly repayment plans bearing in mind the loans are given to needy populations.