I. Introduction
Information Technology (IT) application is today acknowledged as one of the key drivers for the growth of any organization. Microfinance institutions are no exceptions. In India, two classic examples of IT-driven growth are SKS and BASIX. The study captures the trend of the industry. Computerization of the industry also arose from the demand of the practitioners. One such IT tool for automation is Management Information Systems (MIS) (SaDhan, 2006). It is based on identification of information structures that uncover previously unknown trends that may have direct impact on the organization. The two aspects of the information structure are generation and flow of the information. The information is generated from the external source or at different managerial level. The information flow is usually based on the dissemination of the information from the top management and reporting of the information from the field staff. At present MIS is used, for the management of information, by some of the Indian microfinance institutions. The disadvantage of using MIS is that it only debits and credits to the account the information related to funding and disbursement (Ramsing and Waterfield, 1998). Thus MIS broadly helps in reporting of the information but fails to support the management in making effective decisions.