Factors Affecting Loan Repayment Performance among Members of Cooperative Thrift and Credit Society in Yewa North Local Government Area, Ogun State, Nigeria

Abstract

The study focused on the investigation of factors affecting loan repayment performance among members of Cooperative Thrift and Credit Societies in Yewa North Local Government Area of Ogun State. The study drew a sample of hundred and four smallholder agricultural credit users who are members of Cooperative Thrift and credit society identified through a multi stage random sampling techniques. Relevant information on socio-economic characteristics, sources of loan preferred, payback period, factors affecting loan repayment of cooperators and constraints in obtaining loan were collected using structured questionnaires with personal interview and data collected were analyzed using descriptive statistics and multiple regressions. The results of the study revealed that a total of 78.8 percent of the respondents was within the age range of 31-60 years showing that majority of the respondents are within their active and productive ages. The study also revealed that 89.5 percent of the respondents have formal education which facilitates their access to loans through informal sources and with Cooperative Thrift and Credit Societies being the most popular source, and credit was made available and utilized, and cooperators' annual income rose significantly. The results of the regression showed that amount of loan collected by farmers, level of education and year of experience and labor used were the major factors that positively and significantly influence loan repayment. It is therefore recommended that the credit agencies should always endeavour to draw a more convenient disbursement and amortization schedule to conform with economic needs, that is, loan must be adapted to the peculiar needs of the cooperators and repayment condition should be flexible enough to allow for variation and uncertainties in cooperative income.