ABSTRACT
The study was done to ascertain the role of commercial banks in
financing small-scale agriculture in selected areas of enugu
agricultural zone. The aim was to determine the extent to which
commercial banks have given out loans for small scale agriculture in
comparison with other source of credit, and to look into the problem
faced by both the small holder farmers and the banks as regard credit
flow to farmers.
The problems of loans repayment and reasons for loan default were
also taken into consideration in this study. Information was gathered
through questionnaire and personal interviews.
It was gathered b from the result that the small scale formers
have not benefit to any noticeable extent from commercial banks credit
accommodation in the bid to improved their farms. The study also
indicated that rigorous procedures and complexity of loans farms were
some of the factors that vitiate and reduce the access of small farmers
to credit.
In addition, it was gather that the inducement to ask for
credit facilities by the small scale farmers from commercial bank died
down due to the level of collate red requirement, viability of the
scheme form which the loan was to be granted, the tag that the
beneficiary in most cases must be a corporation or a limited
liability company, other problem the small scale farmers envisaged as
regard being accommodated by commercial banks or other financial
institutions includes in a nutshell, illiteracy, ignorance, small size
of farm holdings, little capital, lack of tangible assets and clear
little of land low level of productivity, low income, little or no
saving, interest rate paid, and economic condition in general.
The importance of these finding were also indicated. In
particular so long as the current practice of subjecting the farmer to
some vigous procedure and task to overcome before granting the credit,
it will be unrealistic to expect credit programmers to benefit small
scale farmers and suggest the need for policies designed to accommodated
these limitation.
Finally, it was suggested that channeling credit through farmer’s
co-operatives would conderably strengthen the risk of loan default.
TABLE OF CONTENTS
Title page I
Approval page ii
Dedication iii
Acknowledgment iv
Abstract v
Table of content vi
CHAPTER ONE
1.0 INTRODUCTION
1.1 Statement of problems
1.2 Purpose of the study
1.3 Significance of the study
1.4 Statement of hypothesis
1.5 Scope and limitation of the study
1.6 Definition of terms
CHAPTER TWO
2.0 REVIEW OF RELATED LITERATURE
2.1 Significance of small farmers
2.2 Source of finance
2.3 Uses of finance
2.4 Role of commercial banks
2.5 Factors affecting the distribution of credit to farmers
2.6 Repayment performance in credit programme
2.7 Problems associated with agriculture itself.
CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY
3.1 sampling procedure
3.2 Data collection
3.3 Questionnaires design
3.4 Statistical treatment.
CHAPTER FIVE
5.0 SUMMARY FINDING CONCLUSION AND RECOMMENDATION
5.1 Finding
5.2 Conclusion
5.3 Recommendation
BIBLIOGRAPHY
APPENDIX (QUESTIONNAIRES)
1.0 INTRODUCTION
In Nigeria, agricultural like in most other developing
countries the small scale farmer predominates several constraint and
barriers which appear insurmountable limited the overall farming
activities and if this is anything to go by, it can destroy a developing
economy which heavily rest on the shoulders of small scale farmer.
These small scale farmer are characterized by illiteracy, ignorance,
small size of farm holding, little capital, lack of tangible asset and
tenure system, low level of technology, low level of productivity, low
level income, and general rural milieu. These features combined together
makes the services of formal source of finance difficult to the small
farmer.