ABSTRACT

This study is designed to evaluate the factors influencing loan repayment among farmers beneficiaries of Formal cme(Jpls in Owerri Agricultural zone of Imo Stale. Data relevant to the study were collected from a random sample of 60 farmers from 5 L.G.A in the zone, and from financial institutions namely the supervised Agricultural credit schemes (SACS) in Imo State, and Nigerian Agricultural Rural Co-operative development Bank (NARCDI3), Formally known as NACB through the use of both structured questionnaires and personal interview schedules for both. Statistical tools namely, percentages, Frequency disinbulion as Ordinary least squares technique were used in data analysis. The semi-log functional form gave the best fit in the regression analysis, in terms of economic, statistical econometric criteria, and was therefore (150(1 in policy prescriptions. The intercept, Household size, Expected Annual farm income loan supervision factors per factors will positive influence on loan repayment. The study also revealed that the farmers are yawed with a number of problem such as late procurement of loans, lack of guarantors, business failure and indecency of loan amount the loan repayment performance of the farmers in the zone was not encouraging and the financial institution were laced with a number of constraints most of which ere inadequate supply oF loanable funds, poor recovery rate, loan diversion and bad attitude ,ol farmers towards government credit Institutions It is suggested that government loan policy with respect to designing criteria for selecting loan beneficiaries should emphasize those factors which enhance loan repayment and de-emphasize those that discourage loan repayment.