Microfinance institutions in Ethiopia are playing an important role in poverty reductionrnstrategies initiated by the government of Ethiopia. These institutions have a mission of creatingrnand facilitating credit and other financial schemes to enhance self-employment opportunitiesrnand poverty reduction. To address the main objectives of the study, four Microfinances werernselected for the study purpose. The study was aimed at identifying and analyzing the potentialrnfactors that affects repayment performance of micro and small scale enterprises and individualrnentrepreneur borrowers using the structured questionnaires, semi-structured interviews andrnfocus group discussions. Accordingly, in order to achieve this objective 319 sample borrowersrnwere selected from the total of 2910 borrowers served by those selected MFIs. The descriptivernstatistics analysis and probit regression model was employed to estimate the model and analyzernthe results of findings. The result shows that ten variables including constant: sex, income fromrnother sources, monitoring utilizations of other members in a group, credit timeliness, repaymentrntime suitability, repayment trend on monthly basis and training adequacy are found significantrnand positively influence loan repayment performance of borrower. While loan utilization for thernintended purpose, repayment trend on irregular basis and visit & follow-up on irregular basisrnwas found negatively influence the repayment performance of borrowers. The extensiverninvolvement and interference of third parties on the decisions of loan approval processing tornlending institute were found as a contribution for high defaulting. Thus, it is recommended thatrnthe lending institutes needs to focus on monitoring loan utilization systems of borrowers andrntechnical support needs of the target borrowers through delivering better awareness creation tornorganize the more viable borrowers, close supervision and follow-ups and strengthening theirrninternal and external weaknesses though better integration with key partner stakeholders.rnKey words: Microfinance, loan repayment, loan utilization, integration, stakeholders