MJAAR

Credit Management And Financial Performance: A Case Study Of Pride Microfinance

Asiimwe Isaac Kazaara, Dr Mategeko Betty


Abstract

This study investigated the relationship between credit management practices and financial performance at Pride Microfinance Limited, one of Uganda's leading microfinance deposit-taking institutions. Credit management dimensions examined included credit appraisal, credit monitoring, loan recovery strategies, and credit policy adherence. A cross-sectional survey design was employed, with data collected from 140 employees and managers at Pride Microfinance using structured questionnaires. Data were analyzed through descriptive statistics, Pearson correlation, and multiple regression analysis. Findings revealed a positive and significant relationship between credit management and financial performance (r = 0.731, p < 0.01). Regression analysis showed that credit appraisal (β = 0.352, p < 0.001), credit monitoring (β = 0.298, p < 0.001), and loan recovery (β = 0.261, p < 0.01) were significant predictors of financial performance, collectively explaining 68.9% of the variance in financial performance (R² = 0.689). The study concludes that credit management is a fundamental determinant of microfinance financial performance and recommends that Pride Microfinance strengthen its credit appraisal frameworks, invest in digital credit monitoring systems, and develop aggressive yet client-sensitive loan recovery strategies.

Keywords

Credit management Financial performance Non-performing loans Microfinance Loan
Metropolitan Journal of Academic and Applied Research

Cite This Article

Asiimwe Isaac Kazaara & Dr Mategeko Betty (2026). Credit Management And Financial Performance: A Case Study Of Pride Microfinance. Metropolitan Journal of Academic and Applied Research, 5(6). https://journals.miu.ac.ug/pages/article.php?article_id=643

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