Microcredit is a financial innovation that involves providing small loans, typically to individuals in developing countries who lack access to traditional banking services. These loans are often used for entrepreneurial activities or small businesses, allowing individuals to invest in income-generating activities and improve their financial stability. Microcredit programs typically have lower interest rates and more flexible repayment terms than traditional loans, making them more accessible to marginalized populations. The concept of microcredit gained popularity in the 1970s and has since been used as a tool for poverty alleviation and economic development in many parts of the world.