Posts by category: Finance & Banking
What is the difference between a credit union and microfinance?
Posted on Jul 21, 2023 by Daxton Haverford
In simple terms, credit unions and microfinance institutions both offer financial services but cater to different needs and sectors. Credit unions are member-owned cooperatives focused on serving their members rather than making a profit, often offering lower interest rates on loans. On the other hand, microfinance institutions provide small loans or credit to low-income individuals or groups who lack access to traditional banking services, with the aim of promoting entrepreneurship and alleviating poverty. So, while both are about facilitating financial access, credit unions are more about member benefits, while microfinance is aimed at economic empowerment.