An Evaluation of the Farmer’s Perception of the Major Constraining Factors Affecting the Performance of Microfinance Banks in Rural Agricultural Financing in Kogi State, Nigeria

The study evaluated the rural farmer’s perception of the major constraining factors affecting the performance of Microfinance banks in Kogi State, Nigeria. A multi stage sampling technique was used to select 240 rural farmers’ (respondents) from the four agricultural Zones in Kogi State; Ayetoro – Gbede Zone, Anyigba Zone, Koton-Karifi Zone and Alloma Zone. Primary data were collected through the use of structured questionnaire which were administered to farmers who are the clients of Microfinance banks. The major tool of analysis is the Likert Scale analysis. The study revealed, that while undue delay in processing approved loan, Default in loan repayment, High interest rate charged; inability to access enough loan, Demand for high volume of deposit as collateral, improper assessment of loan repayment potential of customers, short or no moratorium, complex loan form and inefficient management are identified as the major constraints affecting the efficient performance of Microfinance banks in Kogi state, inability to mobilize high volume of deposit, lack of supervision or regulation, lack of loan investment monitoring, corrupt practices of MFBs Staff, lack of awareness of products and services of the MFBs were identified as not serious constraints.