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Typically, a microfinance loan is granted to the operators of micro-enterprises, resembling peasant farmers, artisans, fishermen, ladies, senior citizens and non-salaried employees within the formal and informal sectors. The loans are unsecured, granted on the premise on the applicants profile and the mixed cash stream of the business and household. The tenure for a microfinance loan is normally 6 months however, in the case of crops with longer gestation period, a maximum tenure of 12 months is given.
