Abstract:
The study examined the factors influencing the repayment of MOFA
micro-credits in the Central Region of Ghana using a descriptive-correlation
design. A multi-stage random sampling procedure was used to obtain data for
the study.
Chi-square tests at 5% level of significance showed that there was
significant difference between the repayment of MOFA micro-credits and the
demographic and socio-economic characteristics of clients. The F-values of
686.71 and 15.96 indicated that the micro-credit repayment models had good
fit (p = 0.00) with an adjusted R2 of 0.999 and 0.896 for micro-credit clients
and Agricultural Extension Agents perceptions on .MOFA micro-credit
repayment respectively. The probability of MOFA micro-credit repayment is
influenced mostly by stability in agricultural production, type of agricultural
activity client engaged in, wealth status of client, household size of client,
adequacy of credit, market opportunities for produce, repayment duration of
credit, training for client, timely credit delivery, and supervision of credit use.
It is recommended that MOFA micro-credits should be re-packaged
with reasonable interest rates before delivery to the clients at the right time
and with adequate credit repayment duration depending on production cycle.
MOFA should target agricultural producers irrespective of age, sex, marital
status, educational level, household size and wealth status with credit.
Resource poor clients should be in groups for credit programmes. MOFA
should train clients in agricultural activities to improve on their knowledge
and skills. There should be regular supervision on credit allocation and use,
while potential markets established within preferred areas for sale of produce.
