The purpose of this study was to examine the effect of credit policy measures and their influence on
the performance of microfinance Banks. The objectives were; to investigate the effect of credit
worthiness and the approval of credit limits on performance of microfinance bank, to examine the
impact of control credit accounts and the maintenance of good relation on performance of
microfinance bank and to investigate the level of customer’s satisfaction on credit polices of
microfinance bank. Data were sourced from primary using questionnaire instrument. Regression
analysis techniques was used in this study, to establish a relationship between dependent and
independent variables. The findings revealed thus; credit worthiness and approval of credit limit to
customers in microfinance bank, customers have derived significant satisfaction from credit policy
of microfinance banks right from inception and microfinance bank do maintain good relationship
with credit customers on control credit account. The study recommended that microfinance banks
interest rate should be reviewed to allow more customers being attracted to applying for credit
facilities.
