Revolving Loan Fund

Source of money for small business loans / From Wikipedia, the free encyclopedia

Dear Wikiwand AI, let's keep it short by simply answering these key questions:

Can you list the top facts and stats about Revolving loan fund?

Summarize this article for a 10 years old


A Revolving Loan Fund (RLF) is a source of money from which loans are made for multiple small business development projects. Revolving loan funds share many characteristics with microcredit, micro-enterprise, and village banking, namely providing loans to persons or groups of people that do not qualify for traditional financial services or are otherwise viewed as being high risk.[1] Borrowers tend to be small producers of goods and services: typically, they are artisans, farmers, and women with no credit history or access to other types of loans from financial institutions. Organizations that offer revolving loan fund lending aim to help new project or business owners become financially independent and eventually to become eligible for loans from commercial banks.

The fund gets its name from the revolving aspect of loan repayment in which the central fund is replenished as individual projects pay back their loans, creating the opportunity to issue other loans to new projects.[2]