TABLE OF CONTENTS

DECLARATION .......................................................................................................................... I

APPROVAL ................................................................................................................................ II

DEDICATION ............................................................................................................................ III

ACKNOWLEDGEMENT ......................................................................................................... IV

TABLE OF CONTENTS ............................................................................................................ V

ABSTRACT ............................................................................................................................ VIII

LIST OF FIGURES ................................................................................................................... IX

LIST OF ACRONYMS ............................................................................................................. XI

CHAPTER ONE ooonooouuuuouuuoooouooonouuooooouoooouuoooooooooooeeuoooouoouuouoonuonouooouoooooooooouooouool

INTRODUCTION ...................................................................................................................... !

1.0 Introduction ............................................................................................................................ !

1.1 Background to the Study ........................................................................................................ ]

1.1.1 Historical Perspectives ........................................................................................................ !

1.1.2 Theoretical Perspectives ..................................................................................................... 2

1.1.3 Conceptual Perspectives ..................................................................................................... 3

1.1.4 Contextual Perspectives ...................................................................................................... 3

1.2 Statement ofProblem ............................................................................................................. 4

1.3 Purpose ofStudy .................................................................................................................... 4

1.4 Objective of the study ............................................................................................................. 4

1.5 Research Questions ................................................................................................................ 4

1.7 Scope of the Study ................................................................................................................. 5

1.7.1 Time Scope ......................................................................................................................... 5

1.7.2 Content scope ...................................................................................................................... S

1.8 Significance of the Study ....................................................................................................... S

1.9 Definition ofkeyterms ........................................................................................................... S

CHAPTER TWO uuuouuooouuoooooooooouooouoouuuoooouuuuouooooooooooooououououoooouuouuonooouoououooooooooo6

LITERATURE REVIEW uooouooouoouooounuuuuuuuuooouuoooououooouuouoouo"ouuoouuououoooooououoooooo6

2.0 Introduction ............................................................................................................................ 6

2.1 Theoretical review ................................................................................................................. 6

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2.2 The conceptual review ........................................................................................................... 7

2.3 Debt Management .................................................................................................................. 7

2.4 Financial Perfonnance ........................................................................................................... 8

2.5 Relationships between debt collection management and financial performance .................. 8

2.6 Policies of debt management ................................................................................................. 9

2. 7 Indicators of financial Performance ..................................................................................... 11

2.8 Problems faced by microfinance institutions in delivering financial services to clients ..... 12

2.9 Gaps in the literatnre ............................................................................................................ l3

CHAPTER THREE .................................................................. -. .............................................. 15

METHODOLOGY .................................................................... u ............................................ 15

3.0 Introduction .......................................................................................................................... IS

3.1 Research Design ................................................................................................................... 15

3.2 Survey Population ................................................................................................................ 15

3.3 Sampling Size ...................................................................................................................... 15

3.4 Sample Design ..................................................................................................................... 15

3.5 Sample procedure ................................................................................................................. 16

3.6 Source ofData ...................................................................................................................... 16

3.6.1 Primary source .................................................................................................................. 16

3.6.2 Secondary Source .............................................................................................................. 16

3.7 Data collection methods ....................................................................................................... l6

3.8 Data processing and analysis ............................................................................................... 16

3.9 Limitations of the study ........................................................................................................ 17

CHAPTER FOUR .................................................................................................................... IS

DATA ANALYSIS AND PRESENTATION .....................•.••.•••..................................••..•••... l8

4.0 Introduction .......................................................................................................................... 18

4.1 Demographic characteristics of respondents ....................................................................... 18

4.2 The existing credit policies in Pride Micro-finance ............................................................. 22

4.3 How Loan are recovered in Pride micro-finance ................................................................. 23

4.4 The relationship between credit management and loans performance ................................ 24

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CHAPTER FIVE oooooooooouoooooooouoooooooooonoooooooouuoeuooouoooooooooooouuonoooonoouoouoooooouooouooonououuuoo26

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ............... 26

5.0 Introduction .......................................................................................................................... 26

5.1 Summary of findings ............................................................................................................ 26

5.2 Conclusions .......................................................................................................................... 26

5.3 Policy Recommendations ..................................................................................................... 27

5.4 Areas for Further Research .................................................................................................. 27

REFERENCES .......................................................................................................................... 28

APPENDIX. A ........................................................................................................................... 32

QUESTIONAIRE FOR EN COT EMPLOYEES ....................................................................... 32

APPENDIX. B. BUDGET ......................................................................................................... 35

APPENDIX. C. TIME FRAME ................................................................................................. 36

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ABSTRACT

The study was carried out to find out the relationship between credit management and loan  performance in micro finance institution, taking a case study of Pride, Kabalagala Uganda. The study aimed at investigating the relationship between credit management and loans performance in Pride micro finance institution. The study applied both qualitative and quantitative research designs where interviews and questionnaires were used. Data was collected from both primary and secondary sources. Data was processed and analyzed using formal, tables, pie charts, narrative text and correction to find out the relationship between credit management and loans performance at Pride microfinance institution Kabalagala branch. A total of 35 respondents were considered out of the entire population. The findings indicated that there is credit policies, loans recovery mechanism at Pride microfinance and different recommendations were suggested such as; financial accounting and reporting procedures to ensure better performance, there is need for more resource to be mobilized and help finance the institution, there is need for periodic auditing and inspection on performance of entire institution and come up with risk mitigating strategies to address the challenge of bad debts, default by clients.