Microfinance is a term used by many in different domains to fight against poverty; teachers are using that strategy for improvement of their welfare. Improvement of welfare of teachers is needed especially in sub Saharan Africa. This thesis is focused on three specific objectives: The first of them is to determine the extent of credit access among teachers in Magu district. The second aim is to identify factors that affect the loan access among teachers in Magu district. Lastly, to establish the welfare improvement among teachers in Magu District, in order to accomplish the task, we had to gather data from primary and secondary sources in microfinance institutions a case study of Magu teachers welfare fund (MTWF). The primary sources where from questionnaires. The population was drawn from two different groups; the members of MTWF and the officials of MTWF. Closed and open ended questionnaire were used. The responses were analyzed using percentage frequency tables and bar charts. From the information that we have, the researcher concluded that the access of loans has a positive impact on the development of welfare of teachers. These include increasing saving, increasing investment level in terms of increasing revenue, profit and capital. Also the data shows that the welfare of teachers had increased in terms of household welfare asset, resident house repair & installation, increasing farm activities among the teachers. Additionally household expenditure during the year had increased these expenditure includes school fees, food, transport & communication and medical. Some of MTWF officers confessed that the welfare of teachers have improved after accessing loans. MTWF provide its members with financial and social intermediation services to help improve their businesses. xvi Securing micro-financing by teachers is determined by the stage or level of development in which the welfare is improved. Teachers who have enough deposit and high salary had it easy to access the loans. But the main criteria used were the ability to pay back and to meet the set requirements to obtain a loan. The main requirement is being first a teacher. The finding noticed that the new member who have less deposit and low salary were not included in designing and implementing their policies. The entry requirements are difficult for the new member to meet thus they do not enjoy the services of MTWF. The study recommends that teachers should create budget this is very importance because it will give you a clear overview of what is going on with your money, before teachers accessing loans should undergo practical training. Also the government should provide subsidies to microfinance institutions and develop a policy to control MFIs interest rates and commissions. Lastly the Management should attend short courses to cope with changing environment this will help to increase their professional competency