<![CDATA[This study examines the impact of credit management on loan utilization and financial performance within ASA International Bangladesh, a leading microfinance institution. The primary objective is to understand how effective credit management practices, such as credit assessment, loan monitoring, and recovery mechanisms, influence loan utilization and, subsequently, institutional financial performance. Using a quantitative research design, data were collected through structured surveys from 200 respondents involved in credit operations. The study utilized structural equation modeling to analyze the relationships among credit management, loan utilization, and financial performance. The results show that credit management practices significantly enhance financial performance, with loan utilization acting as a partial mediator between credit management and financial outcomes. Strong credit assessments and continuous borrower monitoring were found to improve loan utilization efficiency, contributing to higher profitability and reduced default rates. These findings highlight the importance of both effective credit systems and borrower engagement in sustaining microfinance institutions. The study suggests that future research could explore the long-term effects of these practices and the role of digital technologies in improving credit management.]]>
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