Lending policies, education, usage and business performance of clients of Pride Microfinance Limited: Case of Buwenge, Jinja District

Abstract

This study was undertaken to investigate the relationships between lending policies, education of clients, loan usage, and business performance of small-scale enterprises owned by clients of Pride Microfinance Ltd, Buwenge Branch.

The study used a correlation survey research design. The study interacted with 350 of clients who received loans from Pride Microfinance Ltd. Data was sourced using questionnaires with the use of statistical programme of social scientists (SPSS). Pearson’s correlation results indicate significant relationships between study variables.

It is important to note that education of clients and loan usages have a role to play in the business performance of small-scale businesses of borrowers. These are critical since lending policies are generally thought to be the biggest hindrance to the business performance of small-scale borrowers of loans from Micro Finance Institutions.