Credit risk management and financial performance of micro finance institutions in Masaka district:

Abstract

The study intended to investigate the credit risk management and financial performance of microfinance institutions with pride microfinance Masaka branch as a case study in Masaka district. The study was guided by three objectives; to establish the credit risk management indicators by pride microfinance Masaka branch, to establish the indicators of financial performance in pride microfinance in Masaka Brach and to establish whether credit risk management affects profitability of pride microfinance in Masaka branch. The study was descriptive and analytical in nature employing both quantitative and qualitative approaches of data collection under a cross sectional case study research design. Questionnaire was the methods used in order to obtain data from a sample of 27 respondents of which 15 were male and 12 were female. The study revealed that majority of employees in pride microfinance are male and the minorities are female this is shown in table 4.1. Majority of employees have worked in pride microfinance for a period of between one to five years and this is shown in table 4.4. Therefore, the study recommended that the management of pride should identify risks as early as possible and make analysis at early stage to prevent the institution from facing credit risks