The empirical study between credit risk management and loan performance of micro finance institutions is a study which stakeholders would want to understand the effect of late payment and therefore management will try its best to facilitate customers comply with credit policies, as they will be able to pay in time The study shall help the management of financial institutions to realize the importance of credit management. Since the role of banks, commercial banks, micro finances and even saving and credit cooperatives is to borrow money to members, it is very crucial to set up all strategies to either giving out a loan or collecting it.