Akerele Et Al


Akerele et al

Greener Journal of  Agricultural Sciences Vol. 4 (6), pp. 238-244, July 2014.

 ISSN: 2276-7770 

Research Paper

Manuscript Number: 030714135

DOI: http://dx.doi.org/10.15580/GJAS.2014.6.030714135

Factors Affecting Loan Repayment Performance among
Members of Cooperative Thrift and Credit Society in Yewa North Local Government
Area, Ogun State, Nigeria


*Akerele E.O., Aihonsu J.O.Y., Ambali O.I. and Oshisanya


Department of Agricultural Economics and Farm
Management, College of Agricultural Sciences, Olabisi Onabanjo University, Yewa
Campus, P.M.B 0012, Ayetoro Ogun State, Nigeria.

*Corresponding Author’s Email:


The study focused on the investigation of factors
affecting loan repayment performance among members of Cooperative Thrift and
Credit Societies in Yewa North Local Government Area of Ogun State. The study
drew a sample of hundred and four smallholder
agricultural credit users who are members of Cooperative Thrift and credit
society identified through a multi stage random sampling techniques. Relevant
information on socio-economic characteristics, sources of loan preferred,
payback period, factors affecting loan repayment of cooperators and constraints
in obtaining loan were collected using structured questionnaires with personal
interview and data collected were analyzed using descriptive statistics and multiple
regressions. The results of the study revealed that a total of 78.8 percent of
the respondents was within the age range of 31-60 years showing that majority
of the respondents are within their active and productive ages. The study also
revealed that 89.5 percent of the respondents have formal education which
facilitates their access to loans through informal sources and with Cooperative
Thrift and Credit Societies being the most popular source, and credit was made
available and utilized, and cooperators’ annual income rose significantly. The
results of the regression showed that amount of loan collected by farmers,
level of education and year of experience and labor used were the major factors
that positively and significantly influence loan repayment. It is therefore
recommended that the credit agencies should always endeavour to draw a more
convenient disbursement and amortization schedule to conform with economic needs,
that is,
loan must be adapted to the peculiar needs of the cooperators and repayment
condition should be flexible enough to allow for variation and uncertainties in
cooperative income.

Keyword: Credit,
Cooperative, Repayment, Loan, Income.


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