Loan default is becoming an increasing problem that threats the sustainability of many microfinance institutions. The causes of the problem are multi- dimensional and non uniform among different literatures. This book, therefore, provides analysis of factors affecting loan repayment performance of women in Harar Microfinance Institution (HMFI). It is mainly based on primary and secondary data. For the analysis purpose, both descriptive statistics and logit regression were used to compare two groups, defaulters and non defaulters, with respect to some explanatory variables. It reveals that loan repayment performance of women is affected by various socio- economic, demographic and institutional factors. It also provides vital information to diverse literatures and has a potential to through light into the area that policy makers, implementing agencies and, anyone else who may engage in providing loan, especially for developing countries, should venture to improve loan repayment performance of borrowers as well as to ensure sustainability of microfinance institutions.