This study evaluates socio-economic factors that could predict repayment ability, quantify the effects of those factors and device a method to curb or manage default in agriculture and/or other credit lending. Data for the analysis were obtained by interviewing a sample of loan beneficiary farmers cooperative society members and non cooperative society members in three local government areas in Kogi State. The major factors that affect repayment ability were identified and the extent of the effect was assessed using the marginal and elasticity of probability. Participation in cooperative societies, non-farm income; farming experience had major effect on repayment ability while family size, farm size and return on investment, had a minimal effect on repayment ability. Poor record keeping, low literacy, and fear of high interest rates were some of the problems and constraints encountered by the farmers and the credit institutions. it is recommended that farmers should be encouraged to keep good records, financial institutions should also ease the process of loan acquisition to enable farmers with low educational background better access to funds. It is also recommended that credit worthiness of to be beneficiaries should be calculated in advance to reduce the frequency of loan default.