Study reveals key factors influencing loan repayment among smallholder farmers
The study looked at how farmers in Amigna Gesgar Districts repay their loans. They found that 30.34% of farmers were not repaying their loans on time. Factors like the purpose of the loan, farmer experience, dependency ratio, and farmer wealth all affected whether loans were repaid. It was suggested that farmers should use borrowed money for productive activities to repay loans on time, and that financial institutions should improve services in rural areas.