dc.contributor.author | Sileshi, Million | |
dc.contributor.author | Nyikal, Rose | |
dc.contributor.author | Wangia, Sabina | |
dc.date.accessioned | 2013-07-25T07:53:52Z | |
dc.date.available | 2013-07-25T07:53:52Z | |
dc.date.issued | 2012 | |
dc.identifier.citation | Million Sileshi, Rose Nyikal and Sabina Wangia (2012). Factors affecting loan repayment performance of smallholder farmers in East Hararghe, Ethiopia. Developing Country Studies, Vol 2, No.11 | en |
dc.identifier.uri | http://www.iiste.org/Journals/index.php/DCS/article/view/3576 | |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/50974 | |
dc.description.abstract | This paper examined the determinants of loan repayment performance among smallholder farmers in East
Hararghe zone, Ethiopia specifically Kombolcha and Babile districts. In the study area, the Regional Government
through Oromiya Saving and Credit Share Company, and Non-Governmental organizations have extended credit
facilities to farming households to narrow the gap between the required and the owned capital to use improved
agricultural technologies that would increase production and productivity. However, there is serious loan
repayment delinquency in the study area, which discourages the rural finance from promoting and extending
credit. A structured questionnaire was used to gather information from 140 smallholder farmers from two
districts, using the multistage sampling technique. The study revealed that of the total sample households 71.4
percent and 28.6 percent households were partial loan defaulters and complete non-defaulters, respectively. A twolimit
tobit regression model was applied to identify factors that influenced loan repayment. The results indicate
that agro ecological zone, off-farm activity and technical assistance from extension agents positively influenced
the loan repayment performance of smallholder farmers, while production loss, informal credit, social festival and
loan-to-income ratio negatively influenced the loan repayment of smallholder farmers (p<0.05). Based on the
findings policy implications were drawn for improving loan repayment performance and sustainability of credit
services and institutions in the study areas. | en |
dc.language.iso | en | en |
dc.title | Factors affecting loan repayment performance of smallholder farmers in East Hararghe, Ethiopia | en |
dc.type | Article | en |
local.publisher | Haramaya University, Department of Rural Development and Agricultural Extension, Ethiopia | en |
local.publisher | University of Nairobi, Department of Agricultural Economics, Kenya | en |