Loan Repayment and Credit Worthiness of Maize Farmers Under Kenechukwu Microfinance in Enugu North Agricultural Zone of Enugu State, Nigeria

Abstract

The determinant of loan repayment and credit worthiness of smallholder maize farmers under Kenechukwu Microfinance in Enugu North Agricultural Zone, Enugu State, Nigeria was studied. One hundred and twenty respondents were randomly selected using multi stage random sampling technique. A well-structured questionnaire and interview scheduled were employed to collect the data. Descriptive statistics such as frequency distribution, table and percentage responses were employed to analyze objectives. The multiple regression analysis and discriminant analysis were also used to analyze the data obtained. The determinant factors to loan repayment in the study area were educational level and distance from the bank to farmers’ house. Furthermore, factor affecting credit worthiness of the farmers were educational level, farm size, off--farm income and distance from bank. The recommendations proffered were needed to ensure farmers’ access to educational programmes, land for genuine farmers and off- farm activities.