ABSTRACT

This study was based on rural credit access and use in arable crop production in Imo State. The research was determined to examine the rural credit access use in arabic crop production to examine the socio-economic characteristics of the credit user and non-credit user respondents; analyse credit supply and demand functions on both rural lenders and borrowers and to analyse the determinants of loan repayment on credit market in Imo State. The analytical tool employed includes descriptive statistical tools like frequency tables and percentage, and regression analysis. The major findings of the research work shows that worth of loan applications, experience in lending, income of lender, lending costs, previous loans recovered and source of loan are significance determinants at credit supply. The research work also shows that experience in lending, lending cost, source of loan, credit demand, credit supply are significant determinants of interest rate. It is however, recommended that given the findings of this research work, it is therefore advocated that interest rate be raise to encourage supplyof credit, while reducing to the bearest minimum forms of cost association with lending. It is also advised that farmers should be adequately educated to foster a • more and informed, and enlighten choice of credit. It is also advised that demands be regulated to avoid high demand for credit which will inturn bring a lot higher interest rate.