The practice of offering small, collateral-free loans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income-generating activities is known as:

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Microfinance refers to the practice of providing small loans to individuals who do not have access to traditional banking services. These loans are typically collateral-free and are given to individuals who want to start small businesses or engage in other income-generating activities. Microfinance institutions also provide other financial services, such as savings accounts, insurance, and financial education, to help individuals build financial literacy and stability.

The Practice of Offering Small, Collateral-Free Loans to Individuals Who