Difference between commercial bank and microfinance | commercial bank vs Financial Institution

What is the difference between commercial bank and microfinance Institutions?
What Is a “Commercial Bank”?
The term commercial bank refers to a financial institution that accepts
 Deposits
 Offers checking account services
 Makes various loans
 Offers basic financial products like certificates of deposit (CDs) savings accounts to individuals and small businesses.
 A commercial bank is where most people do their banking.
 Commercial banks make money by providing and earning interest from loans such as mortgages, auto loans, business loans, and personal loans.
What Is a “Microfinance Institution”?
 Microfinance is a banking service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services.
 Microfinance allows people to take on reasonable small business loans safely, and in a manner that is consistent with ethical lending practices.
 The majority of microfinancing operations occur in developing nations, such as Uganda, Indonesia, Serbia, and Honduras.
 Like conventional lenders, microfinanciers charge interest on loans and institute specific repayment plans.
 The World Bank estimates that more than 500 million people have benefited from microfinance-related operations.

Differences;
Product Offerings
Collateral for Loans
Deposits & Withdraw facility
Scale of Business & Target Customers
Mechanisms for credit


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