DETERMINANTS OF AGRICULTURAL LOAN REPAYMENT PERFORMANCE AMONG BANK OF AGRICULTURE FARMER-BENEFICIARIES IN ANAMBRA STATE, NIGERIA

The study investigated the economic determinants of loan repayment to large and Small Scale Farmer-Beneficiaries of Bank of Agriculture (BOA) Loans from 2010-2016 in Anambra State, Nigeria. The specific objectives were to determine the socio economic characteristics of the beneficiaries, ascertain the determinants of loan repayment and problems militating against loan repayment by the farmers. Multistage sampling involving purposive and random sampling methods were used to select 256 respondents for the study. Primary data were collected using two sets of questionnaires; one for the farmers and the other for the bank officials while secondary data were sourced from loan transaction records in the headquarters and branch offices of BOA in the State. Data were analyzed by means of descriptive statistics and multiple regression models. Findings indicated that the large scale farmers were more advanced in age, educated and had higher years of farming experience than the small scale farmers, who however, were better at repayment. Significant determinants of loan repayment by the large scale farmers were educational level, annual farm income, total annual income, amount of loan disbursed and interest rate while gender, annual farm income, total annual income, amount of loan disbursed and interest rate were the significant determinants for the small scale farmers. Poor returns, low market price and family commitment were the major constraints. The minimization of bureaucratic procedure involved in the administration of the facilities and government, through the Central Bank, should consider reducing cost of lending for agricultural enterprises by lowering the interest rate further were recommended