in every country,microcredit financing can find its root in **'s poverty relief programs and it primalily services the purpose of helping the poor move themselves out of poverty by providing very **all loans.in order for microcredit financing to grow independently and sustainably,it has to follow either the path of humani** or the path of market economy.the path of humani** focuses on the function of poverty relief,emphasizing that microcredit should service the poorest of the poor,which might blur many lines that sharply d**tingu**h financing from charity activities.by receiving donations and grants from generous benefactors,microfinance providers can offer interest rates as low as possible.the other path,which focuses on the sustainability,ins**ts that microfinance providers should follow economy market rules,believing that profit can be the only true incentive for financing institutions to adopt microfinance program and as a result,to benefite many low-income people nationalwide. microfinance in china ** growing on both directions.should we choose one path over the other or keep a fine balance?key word:microcredit,microfinance,social welfare,economic institution.