Information and Communication Technologies (ICTs) has been found to promote the
dual objective of microfinance sustainability and outreach to the poor people. ICTs
enable interactive communication and it promotes greater inclusion of individuals
within networks and overcoming the barriers of physical distance and social
standing. This research aimed at determining the impact of ICT usage in
development of MFIs in loan services. MFIs are working tremendously to the
empowerment, poverty reduction and improvement of living standards for the poor
people in peri urban areas. In this research study; questionnaires used to gather and
MFIs. The data collected from the survey was analyzed quantitatively and
qualitatively. The analysis indicate that based on findings from this research there is
need professional skills development in MFIs and to test the level of computer
technology acceptance in microfinance business. In this research, the investigation
has shown the extent to which MFIs use ICT to deliver business services and train
staff and focus on ICT literacy, business applications, and planning. The study
discovered that MFIs face mainly challenges in performing its duties regarding ICT
usage which are lack of adequate facilities, bad perceptions of stakeholders, and
usage of ICT in microfinance business is still low. Also ICT faced with high
operating costs to provide financial services to the poor people and SMEs.The
studies recommended that the ICT usage in development of MFIs is now being
considered as one of the most important and an effective mechanism for poverty
alleviation. It disseminate precious information on ways to improve the health,
education, legal rights, sanitation and other living standards, which are of relevant
concerns for the poor.