Agricultural Loan Repayment Performance and its Determinants in the Rural Credit Markets of Imo State, Nigeria

Abstract

The repayment performance of a total sample of two hundred and twenty (220) rural household agricultural loan beneficiaries from the rural credit markets in Imo State of Nigeria from a study conducted between October 1998 and March 1999 show an overall high repayment percentage of 78.33% with a default rate of about 21.67%. This is adjudged to be very good when compared with results of similar studies which previously reported repayment performance rates as low as 1.05% (1990), 27% (1991) and 33.72% (1991) respectively. Furthermore, this study also reveals that the major repayment determinants of loan repayment of rural borrowers in the rural credit markets include; the amount of loan borrowed, age and the literacy level of the loan beneficiaries as well as the level of loan supervision.


Key words: Loan repayment, Credit markets, loan default, determinants



[IJARD Vol.3 2002: 37-45]