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

More in This Issue

View full issue →
16
Financial Literacy And Poverty Management In Rural Areas: A Case Of Kyamuhunga Peoples Sacco, Bushenyi District
Kato Justus, Irumba Alex
Financial Literacy Poverty Management Budgeting Savings
17
Financial Management Practices And Growth Of Small And Medium Enterprises: A Case Study Of SMEs In Mbarara City
Dr Ariyo Gracious Kazaara
Financial management Working capital SME growth Budgeting
18
Financial Performance And Internal Controls Of Saccos In Wakiso District
Jjingo Timothy1 , Irumba Alex2
Internal Controls Financial Performance SACCOs COSO Framework
19
Financial Risk Management And Financial Performance Of Commercial Banks In Uganda: A Case Study Of Centenary Bank Mukono Branch
Mugyenyi Mathew, Kabanda Richard
Financial Risk Management Credit Risk Liquidity Risk Operational Risk
20
Household Poverty And Ancillary School Costs As Drivers Of Primary School Dropout In Uganda
Dr. Mategeko Betty1 , Ahumuza Audrey2 , Dr. Twinomujuni Rosebell3
Household Poverty And Ancillary School Costs