Credit services are loans to MSMEs or individuals, often giving capital to those who could not get loans from commercial banks. The microcredit and Peer-to-Peer sectors are two of the fastest growing areas of Alternative Finance.

Alternative Finance: Credit
A Kenyan loan officer is receiving payment from a microfinance client, using biometrics as her identification.


Some of the first Alternative Finance institutions were in microcredit, targeting the poor members of the community and providing loans and financial education.  For example, Grameen Bank, started by Muhammed Yunus in Bangladesh, pioneered microcredit by extending banking services to the poor, especially women, reducing the exploitation of these people by moneylenders, and helping to break the cycle of poverty with the infusion of credit.

Read more about Grameen Bank

Peer-to-Peer (P2P)

Peer-to-Peer lending connects a business’s needs with individuals willing to invest.  There are different channels for these investments, such as P2P credit, P2P equity or P2P factoring.  These channels are especially prevalent in emerging markets, such as China, where MSME financing from banks is almost non-existent.

Read more about Zopa

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