CORRELATES AND CONSTRAINTS OF EFFECTIVE AGRICULTURAL LOAN REPAYMENT IN CAMEROON

This study has been carried out with the objective of examining the factors influencing effective agricultural loan repayment in MFIs and constraints associated with agricultural loan acquisition in West region, Cameroon. From primary surveyed data, a probit model was used to analyze the result. We observed that farm production, training, size of farmland; male household head, married head, interest rate and the loan duration are strongly correlating with agricultural loan repayment. Inadequate agricultural funds, much expenditure on farm competition and improper interference of the third party in the decision of loan approval are the constraints associated with agricultural loan. We suggest that, the decision makers should create more specialized structures in charge of agricultural loan as well as reduce the rate of interest. This is a wise step, towards food security and increase family welfare and improved job market.