Microloans

What Microloans is for

"What's the difference between microfinance and a regular bank loan", "what is joint liability lending", "is a 24% flat interest microloan a good deal", "compare simple vs reducing balance interest on a $1,000 loan at 24% for 12 months" — the concept and true-cost-of-credit questions people have around microfinance. Microloans answers the concept questions from a hand-curated, fully local reference, and answers the cost questions with a genuine, computed calculator — no upstream calls, no accounts, nothing stored.

What it does

What microfinance is. A definition and a side-by-side contrast with traditional bank lending across loan size, collateral, documentation, the lender's cost of capital, and delivery model — explaining why microloans exist and why their pricing looks so different from a conventional bank loan's.

Use cases. Common real-world microloan uses: small-business working capital (the dominant use case worldwide), equipment and tools, agricultural inputs timed to a harvest cycle, home improvement and energy access, emergency cash-flow needs, and education costs.

Typical structures. Group lending / joint liability, progressive (stepped) lending, individual character- based lending, village banking, and digital/mobile microloans — and why each substitutes for the collateral or credit history a typical microloan borrower doesn't have.

Glossary. Plain-language definitions: microfinance institution, joint liability group, portfolio at risk, progressive lending, simple interest, reducing balance interest, effective interest rate/APR, the Grameen model, financial inclusion, and predatory lending.

The calculator — real, computed math. compare_interest_methods takes a principal, a stated annual rate, and a term, and computes — with genuine arithmetic, not a lookup table — the true cost under simple interest (charged on the full original principal for the whole term) versus reducing-balance interest (charged only on principal still outstanding, like a standard mortgage or auto loan), for the SAME stated rate. It returns both equal-installment repayment schedules, a full month-by-month reducing-balance amortization table, and the true annualized (reducing-balance-equivalent) rate a simple-interest borrower is actually paying — commonly 1.5x to roughly 1.7x the stated flat rate for typical microloan terms. This is exactly the gap that makes a "flat rate" quote misleading and is a well-documented pattern in predatory microlending.

What it is not

Not financial advice and not an offer of credit. The calculator does not model fees, insurance premiums, or a specific lender's compounding convention, and is not a substitute for a lender's actual, legally required disclosure (such as a proper APR/effective-rate disclosure). Consult the lender's actual loan documents or a qualified financial advisor before agreeing to any real loan.

Built and maintained by Unify Dynamics LLC. Contact: agent@connectorbay.com.

Microloans — Privacy Policy

Effective 28 September 2026. Unify Dynamics LLC ("we", "us"), Menlo Park, California.

What Microloans is. Microloans is a connector (an MCP server and REST API) that AI assistants and personal agents call on your behalf for microfinance concept reference information and a simple-interest vs. reducing-balance interest calculator. You interact with your assistant; the assistant sends us only the arguments needed for that one lookup or calculation.

What we receive. The arguments of each tool call — at most a glossary search term, or a loan principal, interest rate, and term for the calculator — the technical headers needed to serve the request (an IP address or a client identifier supplied by the assistant, and a Pro API key if you have one), and standard server logs.

Everything is computed on our server and nothing is stored. Every response is drawn from hand-curated, bundled reference content or computed live from standard, published amortization formulas over the numbers you provide; no request is forwarded to any third party, and no query — including any loan amount, rate, or term you enter — is logged in request bodies, recorded, or used to train anything.

What we do not receive or store. We do not receive your conversation with the assistant, your name, whether you are an actual borrower or lender, or any identifying or account information, and we do not build a profile from your queries: each calculation is answered independently and nothing carries over between requests. Rate-limit counters (a client identifier and timestamps) are held in memory for at most 24 hours. Hosting- provider access logs, which contain IP addresses and request paths but not request bodies, are retained for up to 30 days for security and abuse prevention.

Sub-processors. None — every tool is computed locally. Hosting: Vercel (United States regions).

Legal bases and your rights. For users in California, the EU/UK and elsewhere, our processing is necessary to provide the service you request through your assistant. Because we store no personal data beyond short-lived logs, requests to access, correct or delete personal data are usually satisfied automatically; you can still contact agent@connectorbay.com and we will respond within 30 days. We do not sell or share personal information and do not use your data to train models.

Children. Microloans is a general-audience service for adults; we knowingly collect no personal data from anyone.

Changes. We will post changes here with a new effective date.

Microloans — Terms of Service

Effective 28 September 2026. These terms govern use of the Microloans connector ("the Service") operated by Unify Dynamics LLC ("we", "us").

1. The Service. Microloans returns hand-curated general reference content about microfinance concepts (what microfinance is, use cases, typical structures, a glossary) and a computed comparison of simple-interest vs. reducing-balance-interest loan repayment for numbers you provide. It is accessed through an AI assistant or directly over MCP or HTTP.
2. General education and illustrative math, not financial advice. The reference content is general educational information about microfinance concepts, not a recommendation about any specific loan, lender, or borrower. The compare_interest_methods calculator performs real, checkable arithmetic using standard, published amortization and simple-interest formulas over the numbers you supply — it is not individualized financial advice, and not a recommendation to take, extend, or decline any loan.
3. Not an offer of credit, and not a lender's actual disclosure. Microloans does not lend money, is not a lender or broker, and does not originate, service, or facilitate any actual loan. The calculator does not model fees, insurance premiums, taxes, or a specific lender's actual compounding or disclosure convention, and is not a substitute for a lender's own, legally required loan disclosure (such as a Truth-in-Lending or APR disclosure). Always obtain and review the lender's actual disclosure documents before agreeing to any real loan.
4. Illustrative comparison, not a guarantee of any specific lender's terms. The calculator compares the same stated annual rate under two interest-calculation conventions to illustrate how much the convention itself affects true cost. It does not know, and cannot verify, which convention any specific real lender actually uses, or whether a specific lender's disclosed rate is accurate or complete.
5. Acceptable use. Automated use within the published rate limits is welcome.
6. Availability. The Service is provided "as is" without warranty. We may change, limit or discontinue it at any time.
7. Data. Our Privacy Policy describes what we process. In short: your query is answered on our server and nothing is stored.
8. Pro keys. Optional Pro API keys are issued at our discretion, are personal to the holder and may be revoked for abuse.
9. Liability. To the fullest extent permitted by law, Unify Dynamics LLC is not liable for any financial loss arising from use of or reliance on the Service, including any decision to take, extend, or decline a loan based on a calculation from this Service. Our total liability is limited to US $100.
10. Governing law. California law; venue in San Mateo County, California.
11. Contact. Unify Dynamics LLC · agent@connectorbay.com · https://connectorbay.com/microloans

Microloans support

Email agent@connectorbay.com. We answer within two business days.

• MCP endpoint: https://microloans.connectorbay.com/mcp
• REST API: https://microloans.connectorbay.com/openapi.json
• Live status: https://microloans.connectorbay.com/health

When you report a problem, include the question you asked your agent, roughly when, and which agent you used (for example Claude, ChatGPT or Gemini). Never send us passwords, account numbers or ID numbers. Microloans never asks for them.