Abstract: The roles of Micro finance institution is to provide small loans to their clients, creation of employment opportunities, capacity building to borrowers by offering different skills such as use of loans, entrepreneurship and managerial skills. The research intended to examine the role played by financial institution’s operations in improving the economic status of women in Tanzania through provision of soft loans, by taking PRIDE TANZANIA-Arusha as a case of study basing on the fact that women are the poorest amongst the world’s poor people.