ABSTRACT
Kenya Rural Enterprise Programme (K-Rep) is one of the leading micro - finance institution in Kenya, which lends money to small and micro - enterprises. It is therefore important to small and micro - enterprises. It is therefore important to study and understand terms of loans in micro - finance institutions to small and micro - enterprises particularly in this study second - hand clothes dealers This study used systematic sampling. Primary data were collected through personally administered questionnaires, which both structured and unstructured questions were used. Two questionnaires for borrowers and lenders were used. The data collected were analysed using descriptive statistics utilizing statistical package for social sciences (SPSS). Findings indicated that terms of loans in micro-finance institutions were the major difficulties in accessing credit by the second - hand clothes dealers for their business. Also most of the borrowers have not received training in the area of business management nor do they seek consultancy services. The study concludes and recommends that the micro - finance institutions should encourage participatory management consultancy approach on issues affecting the . borrowers; they should explore ways and means of extending the grace period of say more than one year as it is currently.