BMT Darut Tauhid Islamic microfinance institutions boarding based developmentis quitegood. Simultaneously, the economic activity in boarding schools Darut Tauhid isalso growing. The aim of this study is to look at the relationship between performance LKMSwith MSME economic activities in Darut Tauhid using LKMS products as linked variable.This study uses primary data, i.e. interviews with students using a questionnaire. The researchconducted on September 17th-26th 2014. The results of the data analysis using Structuralequation modelling (SEM) showed that LKMS performance is good enough in terms ofproducts and savings deposits, buthave not receiveda positive response to products relatedto finance. This is proved from the data analysis results statistically have significant relationshipbetween the variables of LKMS performance and products of LKMS, but the relationshipbetween the product of LKMS and MSME economic activities are not significant.
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