Revealing the pathway of reluctancy toward agricultural credit repayment: a case study on fish farmers in Bangladesh

Dewan Abdullah Al Rafi, Sanzida Taurin (), Kentaka Aruga, Md. Monirul Islam () and Arifa Jannat ()
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Sanzida Taurin: Bangladesh Krishi Bank
Md. Monirul Islam: Bangladesh Agricultural University
Arifa Jannat: Bangladesh Agricultural University

SN Business & Economics, 2022, vol. 2, issue 6, 1-24

Abstract: Abstract In this study, we attempted to identify both the direct and indirect influences of different socioeconomic and demographic factors for the reluctance towards agricultural loan repayment of fish farmers in Bangladesh. A field survey was carried out with 250 fish farmers, followed by a purposive sampling technique in this connection. Study findings showed that the respondents’ average age was 45.42 years, with an average loan amount of USD 4673.10 for fish farmers. The binomial logistic model showed that secondary sources of income, number of earning members, farm size, and training on sustainable fish farming and loan management had a direct positive and significant effect. In contrast, the ability to repay was considered a negative and vital factor in the agricultural loan repayment system's reluctance. However, to explore the indirect influencing factors towards loan repayment status, an additional binomial logistic regression was performed, considering ability to repay as a dependent variable, and findings suggested that farm size, the number of earning members, training, and farming experience are increasing, whereas loans taken from other sources are decreasing the ability to repay. Moreover, based on the research findings, the following recommendations can be drawn: (a) training on diversified income-generating activities besides fish farming should be introduced; (b) proper loan management should be followed, and pre- and post-loan disbursement should be monitored timely.

Keywords: Agricultural credit; Credit default; Fish farmers; Pathway analysis; Binomial logistic models; Loan disbursement policy (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s43546-022-00224-3

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