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.
1-Mbu Daniel Tambi Department of Agricultural Economics; University of Dschang, Cameroon.