MICROFINANCE LOAN ACCESSIBILITY ON MAIZE PRODUCTION PROJECT PERFORMANCE IN FARMERS’ COOPERATIVE IN RWANDA

Abstract

This study examined the effect of microfinance loan accessibility on maize production project performance in farmers’ cooperatives. A case of COOPAMA in Nyagatare district, Rwanda. The study used descriptive statistics and inferential statistics, both qualitative and quantitative were used to analyze the data with the assistance of SPSS software program version 25.0 descriptive statistics and inferential statistics were used to present frequencies tables, percentages, mean and standard deviation, and inferential analysis was used to use Pearson correlation and multiple regression model to test the relationship between the independent variables and dependent variable. The study used Production Theory, Game Theory of Microfinance, Adverse Selection, and Moral Hazard Theory. The effect of loan contracts for credit demand, the perceptions of loan borrowing, and the effect of the credit administration process of farmers on maize production project performance in farmers were 3.91; 4.04; and 4.07 respectively. The data of project performance was analyzed; the overall means of results was 4.14. The relationship between microfinance loan accessibility on maize production project performance in farmers’ cooperatives between loan contract, loan borrowing, and credit administration and project performance was 0.618, 0.6430, and 0.745 respectively, and the results presented that the variables were statistically significant with p value=0.000b. The results presented the variables of microfinance loan accessibility, the results credit administration process and loan contract were statistically significant with p value=0.000b, and p value=0.283b respectively and the loan borrowing was not statistically significant with p value=0.957b. It concluded that there was a significant relationship between microfinance loan accessibility and project performance. JEL: O16, Q12, Q14, C12, G21 Article visualizations: