A Dissertation Submitted in Partial Fulfillments of the Requirements for the Award of the Degree of Master of Leadership and Management (MLM) of Mzumbe UniversityThis study was conducted at the National Industrial Credit (NIC) Bank in Tanzania. Their search examined various economic activities undertaken by loan beneficiaries and the extent of contribution of NIC bank in poverty reduction at the household level. The study population included bank officers and loans beneficiaries. Sample size of 256 participants was used to collect relevant information for the study, whereby a simple random sampling was used to select210loan beneficiaries and purposive sampling was used to select 46 bank officers. Descriptive research design with a mixed approach (quantitative and qualitative) approach was used. Both the questionnaire and the interview method were used to collect information from the respondents. The study analyzed the data with both qualitative and quantitative data. Findings show that bank loans and the type of economic activity are statistically significant, this means that bank loans and the type of economic activity have an impact on reducing poverty. Moreover, findings showed that gender has a strong positive influence on the banks' loans and the type of economic activity to be undertaken but not a suggestive predictor for poverty reduction. The results remind policymakers and MFI son the position of the BEAandBLto the poverty reduction. Also, the study implicate that the use of gender has no impact on providing loans and establishing economic activities towards poverty reductions. Furthermore, the study implicates that microfinance may be a good weapon to eradicate poverty in the present and future, but without supportive infrastructure, it will be difficult to achieve the expected development goals.