Microfinance is created in the economy for the economic benefit of the poor and to alleviate poverty. The objective of the study was to assess the loan recovery performance of microfinance institutions the case of Addis credit and saving institution, The existence of inconsistent loan recovery performance and there is no researcher done on Loan recovery performance at the study area that inspired the researcher to conduct the study. The institution was selected purposively. Based on the nature of the study the research approach is both quantitative and qualitative or mixed approach and to achieve the objective of the study the researcher was adopted a descriptive research design. Data were collected from primary and secondary sources. Primary data were collected from questionnaires 83 employees were taken from the institution by using senses survey methods and interview with the manager of the branch. From the total respondents (92.7%) were collected. Furthermore, Secondary data were collected from the annual report of the institution related to the loan, including published and unpublished materials, from the loan portfolio reports and balance sheet of akaki kality sub city Addis credit and saving institution for the study period Dec 2016 up to Dec 2020. IBM SPSS 25 software was used. Besides, this qualitative data was analyzed through narrative explanation. finding of the study shows that the credit policy and procedures were not considered the business situation, method of loan collection, type of lending, and loan guaranty system, was not properly implement credit policy and procedures elements. From the institutions loan assessment aspect, the institution was not properly implemented credit analysis element, customers were not given or provide fact information to the institution for loan assessment process, was not working properly evaluation necessary documents. The institution has not effective loan disbursement timing based upon progress of the project, was not have good advanced and operational loan documentation and credit administration methods. From the loan monitoring aspect, the institution has not sufficient human resource, materials and facilities to provide effective loan monitoring activities. Based on the finding the researcher concluded that the institutionâ€™s credit policy and credit procedures were not effective for loan recovery performance, loan assessment practice, loan disbursement timing, and loan monitoring of the institutions were affected loan recovery performance of the institution. Therefore, based on the conclusion the researcher recommended that the institution focus and make adjustments or action on that the related to the preferred study facto to improve or effective loan recovery performance