Loan Size and Its Determinants as Critical Growth Factors for Rural Farmers in Imo State, Southeast Nigeria

Onyeagocha, S. U. O.

doi:10.9734/ajea/2012/975

Cited by 3 publications

(3 citation statements)

References 5 publications

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“…Equally, there is direct relationship between membership of cooperative society and microcredit repayment because of the benefit of social capital it offers. These findings are in term with Oboh and Ekpebu (2011) and Onyeagocha (2012) that obtained similar results. However, the coefficients of age (-0.1937) and household size (-0.4717) were negative and significant at 5% indicating that an increase in the age and household size of the female cassava farmer will result in decrease in the amount of loan accessed.…”

Section: Factors Affecting the Amount Of Loan Accessed By The Cassava...supporting

confidence: 92%

Gender access to microfinance banks’ credit and profitablity of cassava production in Imo State, Nigeria

Anene¹,

Orebiyi²,

Oguoma³

et al. 2022

J. Agr. Food Sci.

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This study investigated the gender inequalities in accessing microfinance credit for profitable cassava production in Imo State,Nigeria. Two-stage sampling technique was used to select 120 respondents comprising 60 male and 60 female cassava farming households. Structured questionnaire was used to collect data such as age, marital status, educational level, years of operating an account, savings in the bank, cooperative membership, collateral provision, amount of credit demanded and obtained by the farmers, as well as, costs of farm inputs and revenue of cassava output. Descriptive statistics, net income model and t-test statistics were used to achieve the objectives. The mean amount of credit obtained for female and male cassava farmers was N252,272.73 and N199,137.93 which was 80% and 76% of the amount of credit demanded respectively with the t-cal value of 0.021 less than t-crit.(5%). The farmers’ net margins were N941,537.89 and N889,304.24 for female and male farmers respectively with t-cal value of 0.00138 less than t-crit.(5%). As evident from the analysis, gender of the farmers does not significantly influence their credit access and profitability in cassava production. Regression analyses showed that years of operating account, saving in bank and membership of cooperatives significantly influenced the amount of loan accessed by both gender. Cassava farmers of both gender are therefore encouraged to operate functional accounts with microfinance banks for a reasonable length of time, maintain substantial savings with the bank and form and/or join existing farmers’ cooperatives to increase their access to microfinance credit and improve profitability of cassava production

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Section: Factors Affecting the Amount Of Loan Accessed By The Cassava...supporting

confidence: 92%

Gender access to microfinance banks’ credit and profitablity of cassava production in Imo State, Nigeria

Anene¹,

Orebiyi²,

Oguoma³

et al. 2022

J. Agr. Food Sci.

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“…According to UHUNMWANGHO & IGBINOSA, (2022), interest rate is defined as the percentage of principal the lender charges the borrower in exchange for the usage of their money. According to Onyeagocha, (2012) and other researchers, interest rates are a significant factor that influences the amount of money that is repaid to rural banks for loans. As a result, the purpose of this research work is to investigate the effect that interest rates have on the demand of loans by customers of rural and community banks in Ghana.…”

Section: Effect Of Interest Rate On Customers' Demand For Loans In At...mentioning

confidence: 99%

Effect of Interest Rate on Customers’ Demand for Loans in Atiwa Rural Bank PLC, Ghana

Obeng Boateng,

Mensah,

Osei

et al. 2024

Injurity

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This study sought to determine the influence of interest rate on demand for loans among Rural Banks in Ghana. The study adopts an explanatory design of the quantitative approach. Secondary data from the Atiwa Rural Bank PLC database was used. The data were analysed using frequencies and percentages. Also, binary logistic and linear regression were used in analysing the relationship among the key variables of this research. The study found that interest rate of Atiwa Rural Bank PLC was rated as moderate while repayment status was high. There were differences between the category of the respondents and the repayment status. More males repay their loans as compared to females and groups. Also, differences existed between the employment status of the respondents and the repayment status. Moreover, insignificant differences were identified between the employment status of the respondents and the repayment status. Interest rate affects loan period positively. Also, a strong positive correlation between interest rate and loan period was determined. Interest rate affects amount of facility negatively. Moreover, credit facility with high interest rate is 1.020 times more likely to default in paying back the credit facility as compared to respondents who obtained their credit facility as a moderate or low interest rate. Increasing interest rate was associated with low or default in repayment of credit facility. The study therefore, recommend that management of the Atiwa Rural Bank PLC put up measures to able to track and retrieve all small amount of facility or loans given to clients. Also, the management of the Atiwa Rural Bank PLC should target more salaried workers and loans used for emergency services such as medical bills, school fees among others in order to reduce Non-Performing Loans (NPL). Moreover, the management of the Atiwa rural bank should improve upon the mechanisms implemented regarding giving of group loans and repayment issues.

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“…The benefitting farmers are expected to make the best or productive use of the borrowed fund and repay on or before the due date, to enable other farmers benefit from the funds. Onyeagocha et al (2012) noted that one way to tackle the negative perception of farmers on loan repayment is to imbibe a positive perception on loan repayment program among beneficiaries. Osabohien et al (2020) posited that increase in farmers need for loan is a problem to cooperative sector due to increase in population of farmers and low repayment perception.…”

Section: Introductionmentioning

confidence: 99%

Rice Farmers Cooperative Group Members’ Perception on Loan Repayment in Kwara State, Nigeria

ABDULRAHMAN,

ADEBAYO,

OGUNLADE

et al. 2023

FUDMAJAAT

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The study examined the perception of cooperative rice farmers on loan repayment in Edu Local Government Area of Kwara State, Nigeria. Interview schedule was employed in obtaining information from 138 cooperative rice farmers randomly selected from twenty-three rice cooperative groups. Data were analyzed using descriptive and inferential statistical tools. The result shows that the mean age of the respondents was 41 years and household size of 7 persons, majority (70.3%) were males, married (84.1%), with average rice farming experience 25 years. Also majority (98.6%) of the respondents have high perception on loan repayment. Loans were used for buying planting materials (98.6%), paying of laborers (92.8) and managing of farm activities (91.3) among others. Preferred timing of loan repayment are fortnightly (94.9%) and weekly (65.2%). The constraints timely repayment of loan were diversion of funds to non-farm ventures ( = 2.18), late disbursement of loan ( = 2.02) high interest rate ( = 1.99), and lack of government support ( = 1.96). Correlation result shows that the age of the respondents (r=0.688, p<0.027), household size (r=0.727, p<0.021), educational level (r=0.923, p<0.014), and years of farming experience (r=0.661, p< 0.036) showed a positive significant relationship with perception of loan repayment. The study established that respondents have high perception for the loan repayment. Socio-economic variables also contributed to the loan repayment. It was recommended that rice farmers should have access to soft loan since they have high repayment, this would help to expand rice farming and boost production as well as constant capacity building training on positive perception on loan repayment

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Loan Size and Its Determinants as Critical Growth Factors for Rural Farmers in Imo State, Southeast Nigeria

Cited by 3 publications

References 5 publications

Gender access to microfinance banks’ credit and profitablity of cassava production in Imo State, Nigeria

Gender access to microfinance banks’ credit and profitablity of cassava production in Imo State, Nigeria

Effect of Interest Rate on Customers’ Demand for Loans in Atiwa Rural Bank PLC, Ghana

Rice Farmers Cooperative Group Members’ Perception on Loan Repayment in Kwara State, Nigeria

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