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 →
36
The role of higher education institutions in modeling knowledge-competency partnerships for national development
Dr. Arinaitwe Julius1 , Asiimwe Isaac Kazaara2 , Nabaasa Desire3
higher education institutions knowledge-competency partnerships national development structural equation modeling
37
The Role Of Micro Finance Interventions On Poverty Reduction In Mukono District: A Case Study Of Goma Lc1 Zone, Mukono Town
Kabeije Immeldah, Zikusooka Enock
Microfinance Microcredit Microsavings Microinsurance
38
The Role Of Mobile Money Banking In Promoting Financial Inclusion In Rural Areas: A Case Of Mobile Money Users In Mityana District
Nakayiki Stella, Irumba Alex
Mobile money banking financial inclusion rural finance MTN Mobile Money
39
The Use of Donor-Funded Programs to Address Structural Gaps in Ugandan Public Service Delivery
Dr. Twinomujuni Rosebell1 , Asiimwe Isaac Kazaara2 , Ahumuza Audrey3
donor-funded programs structural gaps public service delivery Uganda
40
Working Capital Management And Financial Performance Of Saccos In Ngoma Town Council, Nakaseke District
Menya Stanely, Irumba Alex
Working Capital Management Financial Performance SACCO Ngoma Town Council