Tag: difference

What is the difference between a credit union and microfinance?

In exploring the financial world, I've discovered some interesting differences between credit unions and microfinance. Essentially, credit unions are member-owned, nonprofit financial cooperatives that offer a full range of financial services. They prioritize the needs of their members rather than profits. On the other hand, microfinance provides small loans and other financial services to underserved and low-income individuals, often in developing countries, to help them start or grow small businesses. Both aim to promote financial inclusion, but each operates quite differently.