ISSN 2329-9797
International Journal of Agricultural Economics and Extension ISSN 2329-9797 Vol. 8 (3), pp. 001-006, March, 2020. © International Scholars Journals
Full Length Research Paper
Determinants of loan acquisition from the financial institutions by small-scale farmers in Ohafia Agricultural zone of Abia State, South East Nigeria
Henri-Ukoha A.*, Orebiyi J. S., Obasi P. C., Oguoma N. N., Ohajianya D. O.,
Ibekwe U. C. and Ukoha I. I.
Department of Agricultural Economics, Federal University of Technology, Owerri, Nigeria.
Accepted 18 September, 2019
Abstract
The study was designed to analyse the determinants of loan acquisition from financial institutions by small-scale farmers in Ohafia Agricultural zone of Abia state, South East Nigeria. Data were collected with structured questionnaire from 100 randomly selected farmers. Data were analyzed using simple descriptive statistics and multiple regression models. Results show that, the farmers committed their loans to agricultural production and only a few divert their loans. Factors influencing the amount of loan disbursement by financial institutions are age of the farmers, level of education, farming experience and farm size. Financial institutions are encouraged to disburse more loans to farmers to improve their income and alleviate household poverty in the State.
Key words: Loan, disbursement, financial institution, acquisition, credit.