Department of Agricultural Economics, University of Nigeria, Nsukka, Nigeria
Mkpado, M., Department of Agricultural Economics, University of Nigeria, Nsukka, Nigeria; Arene, C.J., Department of Agricultural Economics, University of Nigeria, Nsukka, Nigeria
Poor loan repayment has been a major factor limiting sustainable micro finance programme and projects in Nigeria despite the adoption of group lending techniques which has worked out in many developing economies. The study has documented group design characteristics that positively and negatively affect farm loan repayment. The study was conducted in Imo State of Nigeria. Two micro finance institutions were purposely selected and stratified random sampling was used to select 54 micro credit groups. Results show that micro credit groups are doing well in processing and distributing farm loans and that major positive determinant of loan repayment is fund size. Thus, continued use of micro credit groups and increased fund size for beneficiaries were recommended.