Women are the key instruments in every society. Their role is very important in today’s world. To strengthen the role of women, countries are focusing towards empowerment. Empowerment means giving power in all aspects including finance. To fulfill these objective countries started microfinance institutions. These institutions are playing vital role in every country including Ethiopia. The current study is conducted in Dendi Micro Finance Institutions West Showa zone, Ethiopia. The study mainly focusing on the constraints of rural women in accessing the micro finance institution services. 120 user and non-users of micro finance institutions were chosen from three districts. Primary data collected from the customers of MFI’s and secondary data is collected from interviews and other sources. It presents the results from the descriptive and qualitative analysis. The descriptive analysis used the techniques of mean, standard deviation, percentage, statistics and logistic regression (binary logit) and frequency distribution. In addition the t-test and chi-square statistics were employed to compare use and non -user group. The result of study showed that age of members, awareness, family size, loan collateral, interest rate, and business information are the major constraints of members. The study concluded the customers are facing various constraints like training, low business information, lack of awareness towards family planning and others. The research made some recommendations like reducing family size, changing borrower’s perception, choosing business opportunity, provide information, interest rates on borrowed funds. It is strongly felt that developing women with the support of microfinance, monitoring and creating awareness to eliminate the challenges faced by women in Ethiopia.
