Many models of microfinance in the U.S. and overseas exist. Some differences include: - Loan Size: Many international microlending programs make very small loans of a few hundred dollars. In the U.S. microloans are defined as loans under $50,000. - Interest rates: Typically, interest rates in overseas programs are much higher (15-20%) than in the U.S. (4%-10%) - Peer Lending: Peer lending, a model where a group process underwrites and collateralizes each loan, is a common lending model overseas but is rare here. - Application process: International programs have a simple application process. U.S. microlending organizations often require a comprehensive loan package from prospective borrowers. - Access to alternative sources of credit: Many U.S. microenterpreneurs have access to credit cards, a common source of debt financing for business start-up and expansion. Overseas entrepreneurs do not have this option, making microlending the only option. - Business Coaching: In the U.S. programs typically marry a microloan with business coaching and training. This is less common overseas.