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AE Ediri

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Issues in Business Management and Economics
Vol.1(7),pp.184-192,November 2013
ISSN 2350-157X
Article ID JPR052, 09 pages
Copyright © 2014 Author(s) retain the copyright of this article. Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution License 3.0 International License

Original Research Paper

An evaluation of the amount of credit obtained by rural farmers and its determinants from the microfinance banks in Kogi State,Nigeria.

Accepted 15 October, 2013

*1Abula Matthew and Ediri Agada2.E

1Department of Economics, Kogi State University, Anyigba, Nigeria.
2Department of Business Administration  , Kogi State University, Anyigba, Nigeria.

*Corresponding author E-mail: abulamatthew(at)
Tel.: +2348035103965


The main objective of this study is to evaluate the amount of credit obtain by rural farmers and its determinants from the Microfinance Banks in Kogi State, Nigeria. A multi stage sampling technique was used to select 240 beneficiaries (respondents) from the four agricultural zones in Kogi State namely: Ayetoro-Gbedde Zone, Anyigba Zone, Koton-Karifi Zone, and Alloma Zone. Structured questionnaire was administered on them to collect-data. Descriptive statistics was used to analyze the socio-economic characteristics of the respondents while multiple regressions was used to quantitatively determine the factors that influence the amount of credit obtained by the farmers in the state. Empirical results revealed that, Annual Household Income, Interest Rate Charge and Volume of Loan Repayment influence the amount of loan obtained and were significant at(p=0.01 or p=0.05) . 79.2% of the respondents were male and above 45years of age. Analyses reveal that the literacy level was above average with the mean years spent in school to be 13years and the mean household size of 8 persons. The mean year of experience of respondents was 24.50years. The percentage of the amount of loan granted from the amount of loan requested was 62.43%.

Key words: Microfinance, rural farmer, loan granted, interest rate

Key words:

Abula and Agada