Authors : F. Onyenucheya and O.O. Ukoha
Abstract: This study determined the factors influencing loan repayment and credit worthiness of farmers in Abia State under the Nigerian Agricultural Cooperative and Rural Development Bank (NACRDB). A random sample of 90 smallholder agricultural loan beneficiaries of NACRDB, Abia State were interviewed. The result of the semi-log regression model showed that amount of loan borrowed, annual income and distance between home and loan source were key determinants of repayment. However, the discriminant function analysis showed that farming experience, total operating expenditure-income ratio, farm size, level of education and age of farmers made positive contributions to credit worthiness, while outstanding loan-asset ratio, operating expenditure income ratio, distance between home and loan source made negative contributions to credit worthiness. However, the result also showed that group case correctly classified was 75.6%.
F. Onyenucheya and O.O. Ukoha , 2007. Loan Repayment and Credit Worthiness of Farmers under the Nigerian Agricultural Cooperative and Rural Development Bank (NACRDB) . Agricultural Journal, 2: 265-270.