Credit management and loan portfolio performance in Pride Microfinance Ltd

Master's Thesis , 2019 , 55 Pages

Business economics - Investment and Finance

This study is an assessment of the effect of credit management on loan portfolio performance at Pride Microfinance Ltd, Uganda. Its main emphasis is to examine the effect of credit management policies, credit procedures and credit collection methods on loan portfolio performance.

The examination utilized a clear study plan on 309 respondents who were chosen from an investigation populace of 1170 respondents. Interviews and closed-ended questionnaires were used to collect both qualitative and quantitative data. The findings showed that management policies, procedures as well as collection methods were positively correlated with loan portfolio performance. The majority of the variations in loan portfolio performance could be explained by variations in credit management policies, credit management procedures and credit collection methods for their outstanding balances while keeping other factors constant.

The investigation demonstrated that credit management policies have a beneficial outcome on loan portfolio performance at Pride Microfinance Ltd. If the strategies are actualized, the foundation can almost certainly recoup the loans dispensed prompting a quality loan portfolio. This paper argues that credit collection methods significantly affect loan portfolio performance and for this reason emphasis needs to be placed on appropriate loan repayment frequency for better portfolio management.

TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION
1.0 Introduction
1.1 Background to the Study
1.1.1 Historical Perspective
1.1.2 Theoretical Perspective
1.1.3 Conceptual Background
1.1.4 Contextual Background
1.2 Statement of the Proble
1.3 Purpose of the Study
1.4 Study Objectives
1.5 Research Questions
1.6 Research Hypotheses
1.7 Scope of the Study
1.7.1 Time Scope
1.7.2 Content Scope
1.7.3 Geographical Scope
1.8 Significance of the Study
1.9. Conceptual Framework
1.10 Justification of the study
1.11 Operational Definition

CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction
2.1 Theoretical Background
2.2 Credit Management Policies and Loan Portfolio Performance
2.3 Credit Management Procedures and Loan Portfolio Performance
2.4 Collection Methods and Loan Portfolio Performance
2.5 Summary of the Literature Review

CHAPTER THREE: METHODOLOGY
3.0 Introduction
3.1 Research Design
3.2 The study population
3.3 Sample size and selection
3.3.1 Sampling Techniques and Procedures
3.4 Data Collection Methods
3. 4.1 Survey Method
3.4 Data Collection Methods
3. 4.1 Survey Method
3.4.2 Interview Method
3.4.3 Documentary audit strategy
3.5 Instruments of information accumulation
3.5.1 Questionnaires
3.5.2 Interview Guide
3.5.3 Documentary Review Checklist
3.6 Validity and Reliability of Data Collection Instruments
3.6.1 Validity
3.6.2 Reliability
3.7 Procedure of Data Collection
3.8 Measurement of Variables
3.9 Data Analysis
3.9.1 Analysis of Qualitative Data
3.9.2 Analysis of Quantitative Data
3.10 Ethical contemplations

CHAPTER FOUR: ANALYSIS AND INTERPRETATION OF THE FINDINGS
4.0 Introduction
4.1 Response Rate
4.2 Demographic Characteristics of Respondents
4.3 Analysis of specific objectives

CHAPTER FIVE: SUMMARY, DISCUSSION, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction
5.1 Summary of the Study Findings
5.1.1 Credit Management Policies and Loan Portfolio Performance
5.1.2 Credit Management Procedures and Loan Portfolio Performance
5.1.3 Credit Collection Methods and Loan Portfolio Performance
5.2 Discussion of the Study Findings
5.2.1 Management Policies and Loan Portfolio execution
5.2.2 Credit Management Procedures on Loan Portfolio Performance
5.3 Conclusions of the Study Findings
5.3.1 Credit management policies and loan portfolio performance
5.3.2 Credit management policies and loan portfolio execution
5.3.3 Credit Collection Methods and Loan Portfolio Performance
5.4.1 Credit Management Policies and Loan Portfolio Performance
5.4.2 Credit Management Procedures and Loan Portfolio Performance
5.4.3 Credit Collection Methods and Loan Portfolio Performance
5.5 Limitation of the study
5.6 Contribution of the Study

REFERENCES

APPENDICES

• Author: Yolam Mwembe (Author)
• Publication Year: 2019
• Pages: 55
• Catalog Number: V483526
• ISBN (eBook): 9783668953994
• ISBN (Book): 9783668954007
• Language: German
• Tags: credit, pride, microfinance