Loan Repayment Performance among Crop Famers In Ekiti State, Nigeria

Abstract

The study examined the determinants of loan repayment performance among crop farming households of the Nigerian Agricultural Cooperative and Rural Development Bank (NACRDB), Ekiti State, Nigeria. Data for the study was collected through a multi-stage sampling technique. 100 respondents were interviewed.  Descriptive statistics and Tobit regression analysis were used to analyze the data on socio-economic characteristics of the beneficiaries and their repayment performance respectively. The Tobit regression results on loan repayment of Log-likelihood function (-8.1817236) indicated that age, farming experience, gender, amount borrowed and amount repaid with normalized coefficients of -0.0077933, -0.0059251, 0.1267002, -0.0226621 and 0.301575 respectively were important factors in determining the repayment performance of the beneficiaries. The study concluded that, there will be a great potential for improving the loan repayment ability of the beneficiaries if NACRDB can liaise with Nigerian Agricultural Insurance Corporation to give prompt attention to beneficiaries in case of any loss or hazard through indemnity. 

Keywords: Loan repayment, NACRDB, Tobit, Ekiti State.