The government created the Uganda Women Entrepreneurship Programme (UWEP) in 2015 to improve women's access to low finance and economic development via revolving loan programs. However, the program's 43% return rate threatens its viability. This study examined loan repayment characteristics in Kibaale District under UWEP, highlighting the necessity for early intervention. The research studied how firm finance, financial management training, loan diversion, monitoring, borrower attitude, and peer pressure affect loan repayment. An organised cross-sectional descriptive and explanatory research was conducted using qualitative and quantitative methods. This detailed strategy boosts result credibility. Data from UWEP recipients was collected via structured surveys, interviews, focus group discussions, and document reviews. The research evaluated qualitative responses using theme analysis and quantitative data using descriptive statistics and regression models. Researchers revealed that borrower mindset greatly influenced repayment. Due to political hyperbole and insufficient information, beneficiaries often regarded UWEP loans as government handouts, resulting in lax payback. Poor financial literacy and business management training left beneficiaries unprepared for firm management. Loans diverted to non-productive uses like house spending caused defaults. Poor supervision and infrequent monitoring by Community Development Officers further reduced responsibility. Cohesive groupings had high repayment rates, whereas weakly formed groups had high default rates. Repayment outcomes were better for non-agricultural businesses than agricultural ones, which were more impacted by market volatility and seasonality. The research found that UWEP loan repayment required more than money. Changing mindsets, institutional support, and choosing viable enterprises are key. The research recommends financial literacy training, depoliticising program implementation, enhancing monitoring systems, and leveraging digital technology to evaluate loan performance. Choose beneficiaries based on group cohesion and market feasibility to improve sustainability. Loan recovery and UWEP's long-term economic empowerment of women depend on these processes