Microloans are small loans typically ranging from $100 to $25,000, designed to help individuals or small businesses that may not qualify for traditional bank loans. They are often used to start or expand a business, purchase equipment, or cover other essential expenses. Microloans are particularly popular in developing countries, where access to financial services is limited. These loans are usually offered by non-profit organizations or community lenders, such as Grameen Bank, which was founded by Muhammad Yunus. Microloans often come with lower interest rates and flexible repayment terms, making them accessible for entrepreneurs and low-income individuals seeking to improve their financial situation.