Yemsrach Micro Finance Institutions (YMFI) is mainly engaged in provision of financial service to the micro entrepreneur and smallholder farmers in a sustainable manner. Its income is expected largely to be derived from lending operations, the proper and prompt handling of loan application and processing is vitally important. An effective lending function depends up on development and formulation of sound credit policy and procedure. Beside to loan , Yemsrach Micro Finance Institution also widely works on saving mobilization and awareness creation on how to grow starting from little income to the great investment.