DETERMINANTS OF LOAN REPAYMENT AMONG COOPERATIVE FARMERS IN AWKA NORTH L.G.A OF ANAMBRA STATE, NIGERIA

Abstract

This study examines the Determinants of Loan Repayment Among Cooperative Farmers in Awka North L.G.A of Anambra state, Nigeria. The study provides empirical evidence on the farmers’ socio-economic characteristics as well as determine which of the characteristics that influence loan repayment, the range of amount of loan applied for, amount received and amount repaid by the cooperative farmers and organizational factors affecting the farmers’ credit repayment ability. Findings reveled that the joint effect of the explanatory variable in the model account for 91.9% of the variations in the factors affecting the farmers’ credit repayment ability. Four coefficients (educational qualification, farm size, , loan application cost, and collateral value) are significant at 5%, 1% respectively. Age, membership duration and income of the farmers were not significant but it shows a positive relationship with loan repayment. There is a significant difference between the amount of loan received and amount repaid by the cooperative farmers. All the Organizational factors affecting the farmers’credit repayment ability are significant at 0.000 significant level. The study recommends that farmers can be made to improve on their repayment of farm credit by adoption of income support measures which would serve as panacea. Lending institutions should ensure that whoever they are lending to meets a minimum threshold in asset value before loans are accessed. This will help to reduce defaulters.