2025/06/08 by Alao, O. T., Bamiwuye, O. A., Ayinla, R. A. +1
#Agricultural loan #Arable crop farmers #Funds #Interest Rate #Micro-finance bank
paper · doi:10.82552/njhs.v29i1.118-124
This study examined arable crop farmers' access to agricultural loans from Ilobu Microfinance Bank in Osun State, Nigeria. It explores their socio-economic characteristics, loan eligibility criteria, alternative funding sources, benefits of the loan, and constraints to access. A systematic random sample of 120 farmers was drawn from 240 loan beneficiaries. Data were collected through structured interviews and analyzed using descriptive and inferential statistics. Findings showed that most (94.2%) farmers were male, with a mean age of 40.35±6.022 years, and 54.1% had tertiary education. Nearly all (99.2%) cited past loan records as the main criterion for loan approval, while 96.7% identified personal savings as an alternative funding source. Over half (53.3%) used both hired and family labor. The primary benefits of the loan included improved income and nutrition (95%) and the sustainability of income generating activities (92.5%). However, major constraints were loan repayment defaults (89.2%) and dishonesty among arable crop farmers (40.8%). Only household size (r=0.203, p=0.05) was positive and significantly influenced accessibility to agricultural credit. In conclusion, arable crop farmers accessed agricultural loans from Ilobu Microfinance Bank as well as relied on their personal savings. It is recommended that they enhance farm productivity by leveraging microfinance agricultural credit to invest in improved farming techniques, quality inputs, and modern equipment.