IDEAS home Printed from https://ideas.repec.org/a/ibn/jasjnl/v8y2015i1p92.html
   My bibliography  Save this article

Determinants of Loan Repayment among Small Holder Cooperative Farmers in Remo Division, Ogun State, Nigeria

Author

Listed:
  • S. Isitor
  • A. Otunaiya
  • A. Adeyonu
  • E. Fabiyi

Abstract

This study investigated the factors that are crucial in improving small holder cooperative farmers’ loan repayment in Remo Division of Ogun state, Nigeria. Primary data used for the study were collected with the aid of well-structured questionnaire. Multi-stage sampling techniques were used to select the 120 respondents. The data were analyzed using descriptive statistics and probit regression model. The results of the descriptive analysis showed that about 56% of the respondents were able to repay their loans promptly while the rest were not. The respondents’ mean age stood at 47 years, the majority of them are males and married with fair level of education. The majority of smallholder farmers in the study area had been farming for more than 20 years, while the household size for the majority of them was 4-6 members with average family size of 5. The results of the probit regression analysis revealed that age, level of education, farming experience, net farm income and loan size obtained were the major factors that increase the likelihood of loan repayment, while the number of family dependants reduces the probability of repayment. To improve loan repayment ability in the study area, this study recommended improvement in human capacity development as well as sensitization of the farmers in the study area about the importance of education.

Suggested Citation

  • S. Isitor & A. Otunaiya & A. Adeyonu & E. Fabiyi, 2015. "Determinants of Loan Repayment among Small Holder Cooperative Farmers in Remo Division, Ogun State, Nigeria," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 8(1), pages 1-92, December.
    • Handle: RePEc:ibn:jasjnl:v:8:y:2015:i:1:p:92
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/jas/article/download/54034/29745
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/jas/article/view/54034
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wongnaa, C. A. & Awunyo-Vitor, D., 2013. "Factors Affecting Loan Repayment Performance Among Yam Farmers in the Sene District, Ghana," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 5(2), pages 1-12, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Julian VASILEV, 2014. "Web Service for Calculating the Probability of Returning a Loan – De-sign, Implementation and Deployment," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 18(4), pages 111-119.
    2. Andualem Kassegn & Ebrahim Endris, 2022. "Factors affecting loan repayment rate among smallholder farmers got loans from the Amhara Credit and Saving Institution: In the case of Habru District, Amhara Regional State, Ethiopia," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 25(1), pages 73-96, March.
    3. Omobolaji Omobitan & Aditya R. Khanal, 2022. "Examining Farm Financial Management: How Do Small US Farms Meet Their Agricultural Expenses?," JRFM, MDPI, vol. 15(3), pages 1-15, March.
    4. Abu, Benjamin Musah & Domanban, Paul Bata & Haruna, Issahaku, 2017. "Microcredit Loan Repayment Default among Small Scale Enterprises: A Double Hurdle Approach," MPRA Paper 101576, University Library of Munich, Germany, revised 12 Mar 2017.
    5. Li, Yanru & Wang, Haijun & Gao, Huikun & Li, Qinghai & Sun, Guanglin, 2024. "Credit rating, repayment willingness and farmer credit default," International Review of Financial Analysis, Elsevier, vol. 93(C).
    6. Moumita Poddar & Tanmoyee Banerjee (Chatterjee) & Ajitava Raychaudhuri, 2019. "An economic analysis of the determinants of pattern of institutional borrowing in India," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 21(1), pages 54-92, June.
    7. Ali Ijaz, Sulaman Hafeez Siddiqui, Rabia Rasheed, Muhammad Shahid Nawaz, 2019. "Factors Affecting Delay in Agricultural Loan Recovery among Small Scale Farmers in Sahiwal Region Pakistan," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 6(2), pages 48-53, October.
    8. Jorge Mota & António Carrizo Moreira & Cristóvão Brandão, 2018. "Determinants of microcredit repayment in Portugal: analysis of borrowers, loans and business projects," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 17(3), pages 141-171, November.
    9. Julian Vasilev, 2014. "Calculating the Probability of Returning a Loan with Binary Probability Models," Romanian Statistical Review, Romanian Statistical Review, vol. 62(4), pages 55-71, December.
    10. Uma Murthy & Paul Anthony Mariadas, 2017. "An Exploratory Study on the Factors Contributing Loan Repayment Default among the Loan Borrowers in Micro Finance Institutions in Shah Alam, Selangor," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(12), pages 242-242, November.
    11. Momtaj Parvin & Merajul Islam & Larysa Vdovenko, 2023. "Impact of Non-Performing Loans on the Growth of the Banking Sector in Bangladesh," Oblik i finansi, Institute of Accounting and Finance, issue 1, pages 79-90, March.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:jasjnl:v:8:y:2015:i:1:p:92. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.