A Research Report Submitted in Partial / Fulfilment of the Requirements for Award of the Degree of Master of Science Accounting & Finance (MSc A & F) at Mzumbe University.This study explored the impact of financing SMEs clients on improving the standard of living at Chato District in Geita. Since SME is the general term use for micro, small, medium and large enterprises, the study was only concentrated on the micro and small businesses that are mostly being financed by the NMB PLC. This study aimed at investigating the impact of the loan received by SMEs clients on improving the standard of living at Chato and see whether the loan given to these SMEs clients have real contributed in the improving standard of living. The general objective of the study was to find the impact of loans granted to the micro and small business owners on improving standard of living in terms of business expansion, employment and employment expansion, increase assets ownership, income level and acquisition of basic needs. Specifically the study ought to identify loan disbursement trend between 2010 -2012, to identify and characterize the employment trend for the micro and small business at Chato District that benefited from the NMB PLC Chato Branch loans, to identify the impact of loans given the small and micro business owners in improving the standard of living, while the last objective was to examine the challenges faced by the small and medium enterprises when struggling to expand their businesses. The study design was a diagnostic study with the sampling techniques being systematic random sampling. The findings of the study showed that, bank loans help to improve the standard of living because they contribute into business growth and expansion, hence employment, since employment is a source of income , and whoever is employed then he/she earn income and with that income will increase wealth (wealth in various forms) thus controlling income poverty. The study recommendations are directed to the government insisting on providing conducive environment for micro and small business people, providing training and entrepreneurial skills to the business owners since most of them are the primary and ordinary level of education. To the NMB PLC Management and other financial institutions should provide financial assistance to the SMEs with reasonable and affordable interest rate. However, loan bureaucracy should be reduced and if possible to be completely eradicated and provide them with loans on time as needed with no reasonable delays.