FINANCIAL OPERATING PERFORMANCE AND CHALLENGES OF OMO AND WISDOM MICROFINANCE INSTITUTIONS IN DILLA TOWN, ETHIOPIA

Micro finance being practiced in many developing countries to address the low income society and thereby to improve their livelihood. Ethiopia is also one of the countries where microfinance has been given due consideration as a safety net for the poor to help them to overcome the adversities of poverty. This research aimed to study the financial operating performance and challenges of OMO and WISDOM microfinance institutions in Dilla town, Ethiopia The findings of this study revealed that Provide small business training to the clients, a high interest rate charged on loan, lack of skill of the clients on the fields (sectors), client marketing problems and the loan size given to the clients were too small were the main challenging areas hampering the performance of MFIs in Dilla Ethiopia. The study made recommendations which are aimed to enhancing the operating performance and solves challenges of OMO and WISDOM microfinance institutions.