Analysis of creditworthiness and loan repayment among bank of agriculture loan beneficiaries (Poultry farmers) in Cross River State, Nigeria

Due to the high rate of defaults amongst loan beneficiaries in Nigeria and Cross River State in particular, this study examined creditworthiness and loan repayment of poultry farmers in Cross River State. Specifically, the study assessed credit worthiness of borrowers, identified factors that discriminate between credit worthy and non credit worthy farmers and analyzed factors that influence the farmers' ability to loan repayment. A total of 120 poultry farmers were used in the study. Data were collected by questionnaire and analyzed by means, frequencies, percentages, discriminant analysis and multiple regression techniques. The results revealed that 51.7% of the respondents were credit worthy. Also, Farmers with better educational level and large farm sizes were non credit worthy. While farmers with large total operating expenditure-income ratio, longer years of farming, older farmers with adequate supervision were credit worthy. The results of the linear regression model showed that farmers with large Loan amounts, better educational level, larger farm income, late disbursement and large farm sizes repaid their loans more. An increase in these variables increased their repayment ability. While farmers who were defaulting in their loan repayments were supervised more than those who were not defaulting. The study recommended that older and experienced farmers should be taken in to consideration when loan applications are made.   Key words: Discriminant analysis, poultry farmers, loan repayment.