Loan Repayment and its Determinants in Smallholder Agriculture: A Case Study in the Southern Highlands of Tanzania

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Periodical article

Title:	Loan Repayment and its Determinants in Smallholder Agriculture: A Case Study in the Southern Highlands of Tanzania
Author:	Kashuliza, A.
Year:	1993
Periodical:	Eastern Africa Economic Review
Volume:	9
Issue:	1
Pages:	219-228
Language:	English
Geographic term:	Tanzania
Subjects:	agricultural credit credit small farms Agriculture, Natural Resources and the Environment Development and Technology Economics and Trade
Abstract:	Repayment rates of formal agricultural credit in Tanzania have declined considerably in the last decade and a half and averaged only about 50 percent of the total loans due per year. This study is an attempt to identify some of the main factors which influence loan repayment and default at the farm level. Data for the study were collected through structured farmer interviews and informal discussions in Iringa Rural and Njombe districts in Iringa region between August 1990 and January 1991. Results of the study indicate that better repayment rates are associated with use of machinery and hired labour in farming, optimal credit packages and higher farm incomes. Credit default was accounted for by high consumption expenditures, farmer attitudes, late input delivery, adverse production environment, and declining crop marketing margins. Bibliogr., notes, ref., sum.