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Correlates and Constraints of Effective Agricultural Loan Repayment in Cameroon

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  • Mbu Daniel Tambi

    (Department of Agricultural Economics; University of Dschang, Cameroon.)

Abstract

This study has been carried out with the objective of examining the factors influencing effective agricultural loan repayment in MFIs and constraints associated with agricultural loan acquisition in West region, Cameroon. From primary surveyed data, a probit model was used to analyze the result. We observed that farm production, training, size of farmland; male household head, married head, interest rate and the loan duration are strongly correlating with agricultural loan repayment. Inadequate agricultural funds, much expenditure on farm competition and improper interference of the third party in the decision of loan approval are the constraints associated with agricultural loan. We suggest that, the decision makers should create more specialized structures in charge of agricultural loan as well as reduce the rate of interest. This is a wise step, towards food security and increase family welfare and improved job market.

Suggested Citation

  • Mbu Daniel Tambi, 2020. "Correlates and Constraints of Effective Agricultural Loan Repayment in Cameroon," Global Economics Review, Humanity Only, vol. 5(1), pages 196-206, March.
    • Handle: RePEc:aaw:journl:v:5:y:2020:i:1:p:196-206
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    References listed on IDEAS

    as
    1. Godquin, Marie, 2004. "Microfinance Repayment Performance in Bangladesh: How to Improve the Allocation of Loans by MFIs," World Development, Elsevier, vol. 32(11), pages 1909-1926, November.
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    More about this item

    Keywords

    Correlates; Constraints; Effective Agricultural Loan; Repayment; Cameroon;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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