Determinants of Rural Women Access to Credit in Cheha District, Gurage Zone, Sothern Ethiopia

Abstract

Access of credit for rural women can play a significant role, especially in rural development activities. This study conducted with the aim of analyzing factors that affect access to credit of rural women in cheha woreda. Primary data collected through structured questionnaire from 100 sample women of chukara and Gasore kebeles selected randomly. The different sources of credit (formal & informal credit source) from which the women use credit to each source. Regarding the result from descriptive statistics showed that, women using the informal credit institution are greater than formal credit institution. The estimation results of the logit model show that marital status ,family size, extension advise, distance to nearest credit institution are the important and significant factors that enhance access to credit. In general as these research indicates most samples rural women are on the problem of low land holding size , high family size , inadequate extension advise service and their livelihood is not sufficient for their family so they are on great demand of credit with more amounts in order to enhance their livelihood. Finally I recommended that women use their times and resources wisely and effectively and they may be choose savings than credit and governments give the advise for the women use their time and resource wisely and effectively. Appreciate women who participate in saving than credit.

Keywords: Credit Source,Logistic Regration Model.

DOI: 10.7176/JESD/10-21-02

Publication date: November 30^th 2019