Many countries around the world have a worrying percentage of poverty in which food and financial sources are worryingly limited. Most of the world's poor have suffered from lack of use of financial services. Due to poor credit history or lack of proof of employment, financial services are most often not accessible to low-income customers. In Western and developing countries, people are being eliminated by the traditional financial system due to lack of collateral, unaffordable costs to process the loan application and lack of data related to their credit history. These factors sometimes lead to illegal borrowing and neglect of lending regulations. Microcredit is designed to break the cycle of poverty by allowing low-income residents to access outside funds, something they were previously prohibited from doing. These funds provide the opportunity to participate in investments, such as small businesses, and create a steady stream of income. Microcredit provides financial services to those with low or no income, as well as those who do not have the official documents required to apply for a regular loan. With the objective of a low interest rate and easy application, microcredit appears to be the most effective alternative means of reducing poverty. To help better understand microcredit; We will explore the history of microfinance and its organization, poverty and the target subject of this organization, and the advantages and disadvantages of providing these services. The origins of microfinance date back to the end of the 19th century. Friedrich Wilhelm Raiffeisen first conceived the idea of ​​cooperative self-help after observing the suffering of farmers in the middle of a paper...... they can provide borrowers with a steady stream of income that can help them repay the loan and become eligible for any type of banking services. If microfinance institutions build successfully enough to offer more services to the low-income client market and have the financial comfort to offer appropriate interest per client income, they could be one of the most powerful forces to reduce poverty. If institutions are built well enough to break even or make a small profit, they become a huge, beneficial investment for businesses and wealthy investors. When run as a sister company to other businesses or by outside lenders through an online site, microfinance institutions can provide opportunities, education, and a healthy income stream to people stricken by poverty for the rest of their lives, and slowly contribute to alleviating poverty. poverty.