informal lending
[ɪnˈfɔːrməl ˈlɛndɪŋ]
noun
empréstimo informal
1. The practice of lending money outside of formal financial institutions, typically between individuals, family members, or friends without official documentation or formal agreements
Many people in developing countries rely on informal lending from community members when banks are inaccessible.
Muitas pessoas em países em desenvolvimento dependem de empréstimos informais de membros da comunidade quando os bancos são inacessíveis.
2. Unregulated financial transactions where money is borrowed and lent without interest rates, contracts, or legal enforcement mechanisms
Informal lending networks often operate based on trust and personal relationships rather than collateral.
As redes de empréstimo informal geralmente funcionam com base em confiança e relacionamentos pessoais em vez de garantias.
3. A financial system common in emerging economies where credit is extended by non-institutional lenders such as moneylenders or community groups
The study examined how informal lending affects economic development in rural areas.
O estudo examinou como o empréstimo informal afeta o desenvolvimento econômico em áreas rurais.
Informal lending is particularly prevalent in Brazil and other developing nations where access to traditional banking is limited. In urban communities, it often operates through trusted networks and relationships. In the USA, similar practices are sometimes called 'street lending' or found in immigrant communities. The practice reflects both financial necessity and cultural trust-based economies, though it can be associated with predatory lending and usury in some contexts.
NYC Slang
money under the table; neighborhood lending
Look up more words on Fala2Me
The free English-Portuguese dictionary with real Brazilian accents, NYC slang, conjugator and more
Open Fala2Me →