MJAMR

The Relationship Between Management Information Systems (MIS) And Loan Performance Of Selected Microfinance Institutions In Mukono District.

Akankwatsa Annitah, Dr. Wabunna Muhammad


Abstract

The study examined the relationship between Management Information Systems (MIS) and loan performance in selected microfinance institutions (MFIs) within Mukono District. The objective was to determine how the effective use of MIS influences loan repayment efficiency, default rates, and overall loan portfolio performance. A correlational research design was employed to assess the strength and direction of the relationship between MIS and loan performance. Data were collected from 100 respondents drawn from four MFIs FINCA Uganda, Pride Microfinance, UGAFODE, and BRAC Uganda using structured questionnaires administered to managers, loan officers, accountants, and IT staff. Quantitative data were analyzed using the Statistical Package for Social Sciences (SPSS version 26), and the Pearson correlation coefficient was used to establish the relationship between the two variables. The results revealed a strong, positive, and statistically significant relationship between MIS and loan performance, with a Pearson correlation coefficient of r = 0.782 and a significance level of p < 0.01. This finding implied that improvements in the deployment and utilization of MIS were associated with higher levels of loan repayment efficiency, reduced loan defaults, and overall enhancement of loan portfolio performance. The study concluded that an effective MIS enhances decision-making, facilitates accurate tracking of client loans, and supports timely interventions in loan recovery processes, ultimately improving institutional sustainability. It was therefore recommended that MFIs in Mukono District should strengthen their MIS infrastructure, provide continuous staff training on MIS use, and integrate realtime data analysis tools to optimize loan management and performance outcomes.

Keywords

Management Information Systems loan performance microfinance institutions Mukono District loan repayment portfolio quality credit management
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Akankwatsa Annitah & Dr. Wabunna Muhammad (2025). The Relationship Between Management Information Systems (MIS) And Loan Performance Of Selected Microfinance Institutions In Mukono District. Metropolitan Journal of Academic Multidisciplinary Research, 4(10). https://journals.miu.ac.ug/pages/article.php?article_id=89

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