The study aimed at credit policies and loan recovery from customers in commercial banks in uganda; a case study of equity bank, Kasangati branch and it was guided by the following objectives; To establish the effect of Credit terms on loan recovery in Equity Bank Kasangati Branch, to assess the effect of credit standards on loan recovery in Equity BankKasangait Branch and to find out the relationship between collection procedures and loan recovery in Equity Bank Kasangati Branch. The study used a cross sectional design. The cross-sectional survey was used because it captures the state of the variable at a particular point in time in different areas of an organization. Therefore, cross sectional involved triangulation (use of multiple data collection techniques simultaneously) i.e., utilizing both quantitative and qualitative approaches at the same time. The findings indicated that credit management policies in terms credit terms,credit standards and Collection Procedures explain 39.7% of the variance in the loan portfolio performance (Adjusted R Square = .392). Results further indicated that Credit Standards (Beta = .443, sig. < .01) were a better predictor of loan portfolio performance than the Collection Procedures (Beta = .303, sig. < .01). The regression model was significant at the 99% confidencelevel. The costs associated with obtaining a loan, that are often incurred prior to disbursement affects both projected cash flow and the borrowers' morale regarding settlement of the facility. The study recommends that Equity bank desist from charging full amount of commitment fee on loanamount every time a new facility is sanctioned to a previous borrower. Where a previous limit is increased upon renewal, only the difference should be charged.