Credit Management and Loan Recovery in Pride Microfinance Ltd (Mdi) Soroti, Uganda

ABSTRACT The principle aim of this study was to evaluate the effectiveness of credit management policy and loan recovery in Pride Microfinance (MDI) Ltd. In achieving this, the study investigated the profile the respondents; determined the extent of credit management and the level of loan recovery in Pride Microfinance Ltd; lastly, the study established the relationship between credit management and loan recovery. In pursuance of the above objectives, the study was based on information gathered from 236 respondents consisting of one branch manager, one credit administrator, 50 loan officers and 184 clients of Pride Microfinance (MDI) Ltd. Descriptive correlation design was used and validity and reliability of research instrument were determined content validity index and pre-testing. Data was analyzed by the use of SPSS in which mean, standard deviation, correlation matrix and regression analysis were employed. Findings of the study indicated that the extent of effectiveness of credit management in Pride Microfinance Limited in Soroti is still ineffective at overall mean average of 2.45. Additionally, the level of loan recovery in Pride Microfinance is is high at the overall mean average of 2.60. The study also found out that there is positive significant relationship between the study variables at (r=0.788, R-Squared value 871; Mean Squares 108.994 and F value of 5316.843 and p