Repayment Performance among Cassava and Yam Farmers under Nigerian Agricultural Bank Smallholder Loan Scheme in Cross River State, Nigeria

This study analyzed credit worthiness and loan repayment performance of cassava and yam farmers in cross river state. Specifically, the study assessed credit worthiness of borrowers, identified factors that discriminate between credit worthy and non credit worthy farmers and analyzed factors that influence the farmers’ ability to loan repayment. Purposive and multistage random techniques were used in selecting respondents from which primary data were collected using questionnaires. A total of 150 crop farmers were used in the study. Method of data analysis utilized were means, frequencies, percentages, discriminant analysis and the multiple regression analysis. The results revealed that only 56% of the respondents were creditworthy. Also, farmers with better educational level, larger farm sizes, longer years of farming, proper loan supervision, and low total operating expenditure to income ratio were credit worthy farmers. While farmers with lower loan to asset ratio were said to be non credit worthy. The results of the linear regression model showed that farmers with higher educational level, larger loan amount, and adequate supervision repaid their loans more. An increase in these variables increased their repayment ability. While farmers with longer years of farming, and those whose loans were disbursed late repaid less of their loans. An increase in these variables decreased their repayment ability. The study recommended that more supervision should be exercised on loan beneficiaries to encourage prompt repayment of loan. The bank should consider those with higher level of educational if complete repayment is to be achieved.