Repayment Performance of Rural Farmers Loan Beneficiaries of Microfinance Banks in Kogi State, Nigeria (2005 – 2010)

The study assessed the repayment performance of rural farmer’s loan beneficiaries of Microfinance Banks in Kogi State, Nigeria, using primary and secondary data. Two hundred and forty respondents were sampled, using the multi-stage random sampling. Statistical and econometric techniques such as means, percentages and regression were used for the analysis. Empirical results revealed that, volume of loan borrowed, Annual Household income and size of farm affected repayment by beneficiaries and were significant at P?0.01. The mean age, years spent in school, household size, farming experience, farm size, and farm income were found to be 44years, 13years, 8persons, 34.5years, 3.45ha and N75,000 respectively. The mean loan repayment performance of respondents for all the agricultural enterprises was found to be 88.96%. To achieve a better repayment performance, group lending and credit delivery method now a common features of Microfinance credit delivery should be encouraged and sustained.