Participatory Savings And Borrowing For Start-Up And Recapitalization Needs: Farmers Experience In Nigerian Agricultural Cooperatives And Rural Development Bank (Nacrdb) Abia State, Nigeria

Abstract

This study of Farmer cash savers and borrowers was conducted in 5 branches of a formal small farmer-centered credit institution- the Nigerian Agricultural Cooperatives and Rural Development Bank(NACRDB) in Abia State, Nigeria. Thirty-two (32) farmers who had mandatory savings with the bank were involved. The savings rate across the branches averaged 8.33% but the borrowing rate was as high as 75.18% across the bank branches. A relatively higher proportion of the loans served re-capitalization purposes than start-up needs of the participants/beneficiaries .Experienced farmers with on-going projects were more prepared to manage credit facilities and should be considered for more loans whenever they meet up with the conditions for such new contracts. Key