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An Afghan woman makes clothing with a second-hand sewing machine purchased through a microfinance loan. Image: Department of Foreign Affairs and Trade, Flickr

Many families in third world nations rely on microfinance to make ends meet.

The system of small loans, typically given to poor people to start businesses, now reaches hundreds of millions around the world.

But not everyone thinks this model of finance can work as well in developed nations due to the high interest repayment rates needed to secure the loans.

 

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