EFFECT OF LOAN PROCESSING TIME ON THE GROWTH OF SMALLHOLDER MAIZE FARMERS IN RWANDA
Abstract
The main purpose of this study was to establish the effect of loan processing time on the growth of smallholder maize farmers in Rwanda. The study adopted descriptive statistics and on a target population of 120 smallholder maize farmers within the region. A sample of 93 smallholder maize farmers were selected. Stratified random sampling was employed and data gathered by use of questionnaires, document analysis and observation. Validity and reliability of the instruments was tested using the test retest methods. With the aid of Statistical Package for Social Science version 21.0, both descriptive statistics such as the means, modes, standard deviation, variances and inferential. The study found that there is a positive relationship between growth and loan processing time (0.894). The positive relationship indicates that there is a correlation between the effect of loan processing time on the growth of smallholder maize farmers in Rwanda. This notwithstanding, all the factors had a significant p-value (p<0.05) at 95% confidence level. The significance values for relationship between the growth of smallholder maize farmers in Rwanda and loan processing time was 0.018. The study further concluded that there was a positive effect of loan processing time from microfinance institutions to growth of smallholder maize farmers in Rwanda. The study recommended that Kobuku cooperative should maintain the right level of liquidity in order to be in a position of taking advantage of growth opportunities that may present themselves. Dealing with farmers they should be assured return on investment basing on what they have invested to make sure that there is continuous uptake and enroll with the cooperative. Kobuku should also ensure they maintain sufficient working capital in order to address daily and short-term expenditure such as administrative and marketing costs.
Keywords: Loan Processing Time, Smallholder Maize Farmers, Commodity Financing
CITATION: Bahati, W., & Mulyungi, P. (2021). Effect of loan processing time on the growth of smallholder maize farmers in Rwanda. The Strategic Journal of Business & Change Management, 8 (1), 315 – 325.
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DOI: http://dx.doi.org/10.61426/sjbcm.v8i1.1917
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