Microlending, a form of microfinance, provides small loans to support business expansion for enterprises. Microlending is advantageous because it allows borrowers without sufficient assets for collateral or those unwilling to risk their assets to access loans. Microlending services are provided by banks, microfinance institutes (MFIs), non-banking financial institutions (NBFCs), and other providers. Banks are regulated financial institutions that operate at the federal or state level.
