The role of credit risk management on the performance of micro finance institutions: a case study pride micro finance Uganda (Kabalagala branch)

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Kampala International University, College of Economics and Management
The study covers the role of credit risk management on the performance of microfinance institutions", in Uganda a case study of Pride Micro Finance The scope of research included, the funding of MFI, the role of MFI, the challenges lending policies, how credit risk measurements , the credit of risk management and hoe the credit risks affect the resources of MFI in terms of planning, controlling, directing and organizing. Objectives included to establish the various methods which PRIDE micro finance uses to extend credit to its customers, to find out the presence of credit risk in Pride Microfinance, to establish the extent of credit risk in Pride microfinance, to identify factors influencing credit risk in PRIDE micro finance limited and to establish how best credit risk can be managed in Pride Microfinance. Data was collected using primary data and secondary data. Primary data by use of questionnaires and interviews While secondary data by reading and analyzing Published data, it was processed by using different analysis. The findings were that risk is reduced in Pride Uganda micro finance due to the measurements put in place. The recommendation of the research findings will help institutions currently operating in Uganda to improve on their methods of delivery, performance and those that are trying to expand to avoid costly mistakes. The researcher fills has not exhausted all findings to the topic and therefore recommends upcoming others researchers to carry out research on Management of resources and the procedures taken by the management in case a client fails to pay back the loan.
A Research Report Submitted to the Faculty of Business Administration in Partial Fulfillment of the Requirements for the Award of a Bachelor of Business Administration of Kampala International University
Credit, Risk management, Micro finance