Micro-credit is the largest asset and the main source of income to both NGOs. That notwithstanding, micro credit tends to be the bane of NGOs in Bangladesh: it is risky and expensive to manage. The study sought to assess how micro credit is managed in JCF and AWC. It also examined whether the performance of micro loan was in line with NGOs of Bangladesh benchmark. Additionally, it examined the criteria used in identifying credit worthy clients, the effectiveness of the loan disbursement procedures, the extent to which the NGOs educate and supervise the customers and problems encountered in recovering NGOs loans granted. Using the cross sectional survey design, structured questionnaire and purposive sampling strategy, primary data was collected from a sample of 350 respondents. The research revealed that the bank policies and credit management were in consonance, yet, in practical terms neither of them (bank policies and credit management) influenced the credit performance in the NGOs. The study showed that the positive impact on socio-economic development of Bangladesh. It was recommended that the NGOs should adopt innovative lending methodologies.