Answer / Gurucharan Singh

Microfinance refers to the provision of a range of financial services such as loans, savings, insurance, and training to low-income individuals or small businesses who may not have access to traditional banking services. Microcredit is a specific segment of microfinance that focuses on providing small loans to these same groups. The main difference between the two lies in their scope and scale. Microfinance can encompass various financial services, while microcredit specifically focuses on lending.

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