Dissertation (MA Business Administration)The study assessed the Microfinance Institutions in delinquency management specifically at Dodoma Municipality. It is guided by four specific objectives which were: to determine the management strategies aimed at reducing MFI loan delinquency, to investigate the root course of delinquency in MFI, to evaluate the challenges facing MFIs in delinquency management and to assess the determinant parameters for effective MFI delinquency management. A sample of 110 respondents was used and these were randomly obtained from BRAC and FINCA. The methods used in data collection are interviews, questionnaire, social survey, documentary review and focus group discussion. The statistical package for social science (SPSS 11.5) was used for management of data and analysis. The study findings reveal that, some of the participants in the MFI are aware of the delinquency and its effects while some are not aware of it and its effects. The delinquency management strategies used by MFI at DM as revealed by respondents are; to educate clients about product features and collections fees and charges, to use positive reinforcement, to establish mutually agreeable payment dates, to select and train staffs members, to ensure quality of client information, to create staff incentives and to determine the appropriate collection procedures. Identified courses of delinquency are; illness, fraud, theft, social concern, government intervention, lack of defined strategy, approval, disbursement, promotion and evaluation. Parameters for effective delinquency management in MFI are; analysis of the particular case, knowledge of MFI's staffs to manage delinquency, securing payment commitments, assessment, intensification of collections activities, recording collections activities, compliance with payment commitments, contact with the client, Follow-up on the clients and suggesting an alternative. The study recommends that, in order to ensure effectiveness and efficiency of MFI in delinquency management, the awareness of the participants about the MFI products as well as the effects that will happen as a result of delinquency should be known to the clients before loans are offered to them. Also the program established by MFI should be designed with considerations to the ongoing government policies to avoid interference which may result to delinquency.