(Bishop Stuart University, 2019) Baluku, Watsema; Arthur, Nuwagaba; Anthony, Agume
The study set out to examine the relationship between loan assessment and financial performance
of SACCOs in Mbarara Municipality. The study adopted a non-experimental cross-sectional
research design. The study was both descriptive and analytical in nature with a quantitative
approach of data collection and analysis. The study gathered quantitative data from 109
participants using questionnaires. Quantitative data gathered using questionnaires was coded and
entered into SPSS version 20 for analysis. The analysis was done and findings presented using
descriptive statistics in form of frequencies, percentages, mean and standard deviations. Pearson
correlation coefficient was utilized to ascertain the statistical significance between the
independent and dependent variables. Findings from the study revealed that there is a strong
positive relationship between loan assessment and financial performance of SACCOs
(r=0.870**, p<0.000). The study concluded that loan assessment positively influences financial
performance of SACCOs. The study recommends that SACCOs need to adopt well thought and
efficient loan assessment strategies as means to improve their financial performance
