Community development finance institution (CDFI)
Glossary item: Community development finance institution (CDFI) - Definition
CDFIs lend and invest in deprived areas and underserved markets that cannot access mainstream finance. They are independent organisations that provide financial services with two aims: to generate social and financial returns. Some CDFIs offer loans while others provide equity investment – a few offer both. They serve different types of customers including individuals, micro, small and social businesses (Community Development Finance Association definition). See community development finance and Community Investment Tax Relief.