Determinant of Microfinance Institution Microcredit Procurement among Rural Farm Households in Niger State, Nigeria.

Abstract

The study examined the factors that influence microcredit programme of micro finance institution in Niger State. Data collected using two set of well structure questionnaires administered to both microfinance institutions and the respondents respectively. Multistage sampling technique was used to sample the institutions and the respondents. Questionnaire were administered to 36 microfinance institutions and 144 respondents. Data were analyzed using descriptive statistics, multiple regression analysis and Likert scale. The results show that the coefficient for level of education was negatively related to the amount of loan procure at 5% level of significant. Farmers years of experience as well as farm and non-farm incomes were positively related the amount of loan procure by the maize farmers at 1% level of significance. Similarly, the year of farming experience, farm and non-farm income were significant determinant of maize farmer’s micro-credit procurement p<0.05) under microfinance institution in Niger State. Furthermore, constraints that impacted on the access to micro-credit facility by maize farmers includes level of education, bureaucracy of the institution, high cost of loan processing, high interest rate and sundry charges, political interference among other others, suggested solutions includes; setting aside credits limits in order to make economic impact, reinforcement of the made of operations of the institutions and designing of farmers specific credits regime progromme instead of the stencil-type that farmers are expected to bit into