Analysis of Credit Needs, Sources, and Repayment Performance of Agricultural Market Vendors in Santa Rosa Public Market, 2017

Date

1-2022

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Marilyn M. Elauria

Committee Member

Agham C. Cuevas

Abstract

This study entitled Analysis of Credit Needs, Sources, and Repayment Performance of Agricultural Market Vendors in Santa Rosa Public Market was conducted with the main objective to assess the credit needs, sources, and repayment performance of the agricultural market vendors in Sta. Rosa Public Market with specific objectives: 1. determine the capital requirement of the vendors; 2. assess association between credit needs and the factors affecting it; 3. determine the different credit sources and the reason behind the choice of credit source; 4. compare the market vendors’ net income per peso of operating cost; 5. determine and compare the repayment rate of market vendors; and 6. identify problems encountered by the market vendors regarding the credit availment from the formal and informal credit sources and suggest possible solutions.

Fifty-two purposively selected market vendors were interviewed using pre-tested questionnaires. The analytical tools that were used in the study were the following: descriptive analysis, cost and return analysis, chi-square test, and return on investment analysis.

Despite the high costs of borrowing from private money-lenders, they were still the most accessed credit source among the vendors in the public market. The respondents preferred to borrow from informal sources because of the ease of complying with the terms required from the informal sources, as compared to borrowing from the formal sources. Even though majority of the market vendors borrowed from the informal credit source, twenty-nine percent of the informal borrowers still had problem with regards to the interest rate that was charged to them by the lenders. As for the repayment rate of the market vendors, majority of them were categorized in the high repayment category even with the problems they have encountered.

In terms of scale of operation of the respondents, it was found that pork vendors had the highest revenue of PhP133,146 among the three commodities while chicken vendors had the least cost incurred of PhP56,480. On the other hand, when classified by the source of credit, it was the formal credit source borrowers who has the highest revenue while the informal credit source borrower had the least amount of PhP74,784. On average, the respondents’ net income is about PhP13,512 which is enough sustain the business according to them. Regarding their net income per peso of operating cost, it was found to be higher than 10% which suggests that the market vendors’ business is profitable.

Based on the findings of the study, it was recommended to try and lessen the expenses both in the business and the respondents’ household for them to be able to save some extra money. Since formal credit sources, in this case, a cooperative, offers a lower interest rate to their members, it is recommended to avail loans there instead of those five- six money lenders.

Language

English

LC Subject

Labor market, credit control

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2022 A14 M35

Notes

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Document Type

Thesis

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