Factors Affecting the Performance of Small Holder Credit Schemes offered by Commercial Banks in Chipata District
Loading...
Date
2007
Authors
Hansungule, Thomas Phiri
Journal Title
Journal ISSN
Volume Title
Publisher
University of Zambia
Abstract
This study was carried out in Chipata District in Zambia's Eastern Province. The overall
focus of this study was to analyse the factors which affect the performance of small
holder credit schemes offered by commercial banks to small scale farmers. The Zambia
National Commercial Bank and National Savings and Credit Bank offers credit to small
scale farmers.
The objectives were to determine the productivity levels o f small scale farmers who have
received credit from commercial banks, to determine the performance of small scale
farmers in terms of loan repayment, to assess the appropriateness of lending policies of
the bank and to find out the extent to which commercial banks supervise the way small
scale farmers use their loans for.
The findings were that in general productivity levels of small scale farmers increase after
accessing credit, this can be attributed to availability of farming inputs to farmers when
they access credit, on the other hand it was found that these commercial banks do not
monitor the loans use by farmers. Research also reviewed that small scale farmers who
were accessing these loans were benefiting because their income levels increase though
not upon selling their produce because of the long period it takes for them to be paid, the
farmers use this income to send their children to school, access health services and
generally improve their conditions of living.
The key recommendations of this study were that the Zambia National Savings and
Credit Bank and Zambia National Commercial Bank must involve farmers in the
formulation of these Credit Packages and to embark on extensive Monitoring programs.
Description
Student Project Report
Keywords
Agricultural credit-Zambia