Analysis of factors influencing loan acquisition among small scale rice farmers in Kazaure Local Government Area, Jigawa State, Nigeria

Abstract

The research was designed to analyze the factors that determine loan acquisition by rice farmers in Kazaure Local Government Area, Jigawa State, Nigeria. The study used primary data collected through interview schedule with the help of structured questionnaire from 215 randomly selected rice farmers. Data collected were analyzed using simple descriptive statistics and the appropriate form of multiple regression models. Results from the analysis showed that the farmers were in their active age, educated and experienced. About 69% of the farmers did not have access to formal loaned funds. Interest rate, farm input, farm size and loan times significantly affected loan acquisition. The major factors that influenced loan acquisition were; delays in release of funds, tedious documentation process, no acceptable collateral and long distances to make loan requests. Financial institutions were encouraged to grant loans on for timely supply of farm inputs and at affordable interest rate. Lending agencies should advice the respondents on appropriate farm size and loan to meet up with the farm needs.