‘Microcredit’ is a new and fruitful concept in economics. This means a very small amount of loan. To get a loan from a bank, one has to mortgage any property. So those who do not have property, those who are very poor, can not take any loan from the bank. That is why Muhammad Yunus has come up with the idea of microcredit through which thousands of poor people can get loans without any kind of mortgage or collateral. His idea has proved to be effective in alleviating poverty all over the world. Therefore, Muhammad Yunus and his Grameen Bank have been jointly awarded the Nobel Prize. The following essay and paragraph shed light on the importance and role of microcredit.