Factors Affecting Credit Access and Utilization of Tilapia Fishermen in Sta. Cruz, Laguna

Date

5-2025

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Fitz D. Jimenez

Committee Member

Emil John C. Cabrera, Juan Paulino Trespalacio Junior, Dia Noelle F. Velasco

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Abstract

The general objective of this study was to analyze the factors affecting access to and utilization of credit among tilapia fishermen in Sta. Cruz, Laguna, and determine how it affects their fishing productivity and income. Specifically, the study aimed to: (1) describe the sociodemographic, fishing, and credit profiles of tilapia fishermen in Sta. Cruz, Laguna; (2) identify fishermen’s perception of credit accessibility and availability and the factors influencing their credit decisions; (3) assess the utilization of accessed credit in enhancing fishing productivity and income; (4) examine factors affecting fishermen’s income in Sta. Cruz, Laguna; (5) evaluate the effectiveness of credit utilization in improving fishing productivity and income; (6) analyze the differences in income levels between borrowers and non-borrowers; and (7) formulate recommendations to enhance access to and the impact of credit services.

Sta. Cruz, a municipality in Laguna, is the municipality with the highest number of tilapia fishermen in the province. The study employed a quantitative research design, with data collected through structured face-to-face interviews with 100 randomly selected fishermen from three barangays: Gatid, Calios, and Sto. Angel. Stratified random sampling was used to ensure representation. Analytical tools included descriptive statistics, binary logistic regression, multiple linear regression, paired sample t-tests, and independent sample t-tests.

The results showed that the majority of respondents were male (98%), aged between 51–60 years (30%), and married (83%). Most had attained only elementary or high school education, with 67% earning ₱10,000 or less per month and 51% reporting no other sources of income. On average, they had 2.72 children, and had been fishing for 27 years, using their current method for about 25 years. Common fishing gear included gillnets, motorized boats, and cages. Monthly fishing income averaged ₱6,090, with fishing expenses at ₱3,279.

About 54% of fishermen had prior borrowing experience. Of these, 51.9% obtained credit from formal institutions (e.g., cooperative-based microfinance, microfinance institutions, and banks), while 44.4% relied on informal sources (e.g., relatives, friends, and traders). Credit was primarily used for operational and household expenses, as well as purchasing fishing equipment. Cooperative-based microfinance offered the highest average loan amount (₱35,200), while informal loans averaged ₱9,540. Loan maturity ranged from a few weeks (informal lenders) to three years (banks).

Barriers to credit access included high interest rates (36.95%), lack of awareness (19.56%), fear of debt, and rigorous application requirements. Despite this, the attitudes related to the availability and accessibility of both formal and informal sources of credit were largely positive. The respondents considered informal credit sources to be more accessible on administrative and social grounds, while formal sources were still believed to be physically and financially reachable, non-discriminatory, and informative.

Binary logistics regression identified monthly income, monthly fishing income, and civil status to have a significant effect on whether fishermen availed of credit. Higher monthly income reduced the likelihood of borrowing, while higher fishing income increased it. Marriage increased the likelihood of borrowing. In credit source preference, monthly income, household expenditure, and family members who fish were identified to be significant variables. Formal credit increased with growing income, but with growing household expenditure and more family members who fish led to a preference for informal credit.

Credit utilization was diverse: 25.92% used it for household and operational purposes, 20.37% for operational purposes only, and 14.81% for operational and equipment purchase purposes. Others used credit for a mix of operational, household, and repair purposes.

Multiple linear regression analysis revealed that of all the sociodemographic and fishing variables, only the credit utilized had a statistically significant positive effect on income (p = 0.0125), i.e., credit has a direct contribution towards income generation when utilized. Paired sample t-tests also reconfirmed that income increased significantly post- credit utilization. Independent sample t-tests further revealed that borrowing individuals had higher incomes compared to non-borrowing individuals.

On the basis of the findings of the study, the following actionable recommendations are made to address the tilapia fishermen’s credit access and utilization problems in Sta. Cruz, Laguna. First, tilapia fishermen are encouraged to borrow in larger but manageable amounts, as the study found that higher loan sizes are positively correlated with increased income, enabling investment in better tools and expansion of operations. To support responsible borrowing, targeted financial literacy activities should be implemented to educate fishermen on credit management, budgeting, and long-term financial planning. Given the predominantly older demographic and heavy dependence on fishing, livelihood diversification into low-barrier activities such as fish processing, dried fish production, or marinated tilapia should be promoted, with support from LGUs, cooperatives, and NGOs through training, seed capital, and organizational assistance. Encouraging the involvement of family members in fishing operations and promoting membership in cooperatives or associations can also enhance productivity and improve access to more favorable financing options. Credit institutions such as cooperatives, microfinance organizations, and rural banks are encouraged to streamline loan application procedures, offer sector-specific lending products aligned with aquaculture cycles, and conduct localized, culturally appropriate outreach programs to increase awareness and trust. While informal lenders remain popular due to their accessibility, there is a need for regulation to prevent exploitative practices. Lastly, coordinated support from government bodies, credit providers, and local organizations should integrate financial services with technical assistance, livelihood training, and infrastructure support to ensure that improved credit access results in sustained income growth and long-term development of the tilapia aquaculture sector.

Language

English

LC Subject

Fisheries--Economic aspects--Philippines, Credit analysis

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2025 M17 A93

Notes

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Document Type

Thesis

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