Loan repayment and its determinants in smallholder agriculture: a case study in the southern highlands of Tanzania

Abstract

Repayment rates or formal agricultural credit inTanzania have declined considerably in the last decade and a half and averaged only about 50 per cent of the total loans due per year.This study is an attempt to Identify some of the main factors which Influence loan repayment and default at the farm level. Data for the study were collected through structured farmer interviews and informal dIscussions in two districts in Iringa region