Poverty eradication is one of the main agenda for many governments all over the world in their quest to develop the nation. The government with the support from the private sector and NGO's has initiated various plans and programs to support rural poor communities to raise their living standard. In this regard, Amanah Ikhtiar Mal;aysia (AIM) is one of the NGO's in Malaysia that has introduced a Micro Credit Scheme (MCS) to help poor communities especially those in rural areas to improve their living standard. A case study was conducted among the recipients of the AIM's loan at Kuala Krai, Kelantan. This place was chosen because based on data from AIM, Kuala Krai received the highest capital injection in Kelantan about RM25 million was been allocated in 2011 and 40% of the Kuala Krai's populations are participating in AIM's MCS. Therefore, 100 respondents participated in the study and the findings show that overall the scheme was successful in helping to empower the rural community there. In addition, beneficiaries of the program could manage their businesses with the financial support provided by the AIM MCS. However, the findings show that there are some challenges in terms of lack of training, monitoring, credit total and ineffective advise that could be a barrier for achieving the objective of the scheme. Therefore, all parties concerned i.e. AIM, the recipients, the community and the relevant government organizations should be more proactive and be involved sincerely in the program to overcome these challenges in order to achieve the desired goals and aims of the MCS.
