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Discriminant Analysis Of Seasonal Agricultural Loan Repayment By Small-Scale Farmers In Transkei

Author

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  • Lugemwa, W. H.
  • Darroch, M. A. G.

Abstract

A linear discriminant model is used to identify loan and borrower characteristics associated with successful and default seasonal agricultural loans at the Agricultural Bank of Transkei in 1991. Results indicate that small-scale farmers with a proven credit history, higher repayment ability and collateral, and relatively more off-farm income were less likely to be default risks.

Suggested Citation

  • Lugemwa, W. H. & Darroch, M. A. G., 1995. "Discriminant Analysis Of Seasonal Agricultural Loan Repayment By Small-Scale Farmers In Transkei," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 34(4), December.
  • Handle: RePEc:ags:agreko:267846
    DOI: 10.22004/ag.econ.267846
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    References listed on IDEAS

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    1. Coetzee, G. K. & Kirsten, J. F. & van Zyl, J., 1993. "The Role Of Credit In The Farmer Support Programme: Is It The Key To Success?," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 32(4), December.
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    Cited by:

    1. Kuhn, Manfred E. & Darroch, Mark A.G., 1997. "Factors Affecting Rural Medium-term Loan Repayment: Evidence from a South African Development Finance Institution," 1997 Conference, August 10-16, 1997, Sacramento, California 197057, International Association of Agricultural Economists.

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