Abstract:
The study examined the perceived influence of Fiagya Rural Bank microcredit on the livelihoods of rural farmers in Nkoranza North District. The study used a descriptive survey design of the quantitative approach. Convenience sampling technique was used to select 217 farmers in Nkoranza district who were also clients of Fiagya Rural Bank Limited. Questionnaire was used as a primary source of data. Furthermore, the data were analysed using percentages, and frequencies. The study found that microcredit highly increased income of the respondents. Also, microcredit highly improve agribusiness of respondents. Moreover, respondents found microcredit very helpful in their agricultural productivity. Also, challenges of respondents in accessing credit from rural bank limited included high interest rate, bureaucracy in processing credit, credit tied to certain ratio of savings, untimely delivery of credit, collateral issues, strict measures and procedures taking into consideration in vetting loan or microcredit applications as well as difficulty in repayment of previous credit or loans. Moreover, coping strategies of respondents included borrowing from family, relatives or friends, access to microcredit from microfinance institutions, reduction of agricultural productivity, selling of belongings as well as engaging in petty trading activities. The study recommended that farmers in the Nkoranza district should have good savings habit in order to avoid any inconveniences in accessing loans from Fiagya Rural Bank Limited. Also, Fiagya Rural Bank Limited should reduce their interest rate. Fiagya Rural Bank Limited should design packages to include group loans in order to cater for farmers who do have collateral issues as well as those with savings issues.
