They collect the savers' funds and lend them to the credit applicants. They buy and sell money. Some countries set up special banks to finance women's special needs. Access to bank or project credit has become a necessary prerequisite for income-generating activities. 5.4.3 Interest rates.
Interest is intended to cover the lender's risks.
For example, loans for animal traction or mills would be medium-term. The term of a loan is therefore usually based on the expected lifespan of the activity for which the loan has been requested, and the repayment time on the time it takes for that activity to begin producing a return. The first requirement is, of course, to be already involved in or have plans to set up an income-generating activity. The next step is to prepare a loan application containing the information needed by the lender to examine the activity or project put forward by the applicant. The estimated operating account is an essential component of the credit application file and should be as accurate and realistic as possible.