Abstract: Microcredit programmes provide small loans to the very poor in order to undertake self employment and other financial and business activities giving them the ability to care for themselves and their families and thus, achieve a level of independence. Microcredit is also referred to as microfinance and micro lending which has demonstrated to be an effective tool in the ongoing struggle against poverty and enables those without access to lending institutions to borrow and start small business. The concept of AIM is to create out of the hardcore poor households, highly motivated individuals who are committed to earn an honest living and eventually move out of the poverty level. For that reason, Amanah Ikhtiar Malaysia plays a major role in microcredit programmes of Malaysia. This study highlights on the AIM loan programme, financing scheme, loan disburse and achievement indicators of the Amanah Ikhtiar Malaysia (AIM) and also discusses the contribution of the AIM microcredit programme to poverty alleviation in Malaysia. The experience of the AIM shows that microcredit is the most important tool in efforts to reduce poverty.