Factors Affecting Loan Utilization And Repayment Patterns By Small Holder Farmers Of The Nigeria Agricultural Cooperative And Rural Development Bank (NACDRB) In Osun State, Nigeria

  • A.E Adekoya
  • B Aderibigbe
Keywords: Loan utilization, Loan repayment pattern, Small holder farmers.


The study identified factors affecting loan utilization and repayment patterns by small holder farmers of the Nigerian Agricultural Co-operative and Rural Development Bank (NACRDB) Osogbo branch in Osun State. Two Local Government Areas with large number of loan beneficiaries from 2003 to 2008 in NACRDB were purposively sampled. 206 beneficiaries were selected and data were obtained using a structured questionnaire. Descriptive statistics, Chi-square and Pearson Product Moment Correlation Coefficient were employed in data analysis. Results showed that 35.8% of the beneficiaries were between the age brackets of 51- 60 years, about 61.3% of the respondents had a minimum of secondary school education. About 60% were granted the sum of N50,000 – N100, 000, while most (73.3%) of the respondents claimed to have spent more than 60% of the loan on the purpose it was meant for and 69.8% of the respondents had repaid part of the loan. Tests of relationship showed a positive and significant relationship between respondents’ religion and loan utilization. Also there was a significant relationship between perception of the respondents toward NACRDB loan and their loan repayment pattern. The study concluded that the determinants of loan repayment patterns highly depend on the perception of the respondents toward the loan they obtained. Also, it can be inferred that effective utilization of loan is directly influenced by the religion of the respondents.

Key words: Loan utilization, Loan repayment pattern, Small holder farmers.


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eISSN: 0794-1005