Microlending is different from traditional mainstream lending in three ways: the motivation, the people involved, and the size of the loans. One main aspect of microlending is the motivation behind it.
Traditional lenders are focused on earning a profit. On the other hand, microlenders’ main goal is to help emerging entrepreneurs who would otherwise not be able to borrow. The loan is geared towards development.
Microloan programs and organizations might as well provide training. Entrepreneurs are taught how to run a business. This is the opposite of other lending institutions where no training is provided for starting a business. Kiva is one example of a microloan program that has helped millions of people get funding in 80 different countries.