Factors affecting delinquency of member-borrowers of Samahang Magsasaka sa Paraang Organiko para sa Kaunlaran ng Tayabas (SAMAPOKATA), 2011

Date

4-2012

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Prudenciano U. Gordoncillo

Committee Member

Marilyn M. Elauria, Arvin B. Vista

Abstract

The study determined the factors affecting loan delinquency of member- borrowers of Samahang Magsasaka sa Paraang Organiko Para sa Kaunlaran ng Tayabas (SAMAPOKATA). Specifically it was conducted to: describe the credit delivery system of SAMAPOKATA; determine the socio-economic characteristics of members of the organization; determine the loan collection performance of the organization; identify and analyze the factors affecting loan delinquency of member borrowers; and lastly identify problems encountered by the member-borrowers in paying their loans and recommend solutions to lessen delinquency.

All active members of the organization were interviewed using a structured questionnaire. Four inactive members who borrowed from the organization were also included in the study. Descriptive statistics such as frequency counts, means, summations and percentages were used. Binary logistic regression analysis was employed to determine the significant factors affecting loan delinquency.

Results showed that the factors significantly affecting loan delinquency were age, household size, attitude towards credit, and attendance in meetings. Using the same logistic model, the marginal effect was computed. Results showed that increases in age, household size, attitude towards credit and attendance in meetings would increase the probability of the farmers being non-delinquent.

It was found out that there were problems faced by the farmers when paying their dues and those were insufficient income, prioritizing other expenses, forgetting their dues and inactivity in the organization.

Farmer borrowers who were older and have a large household size were less likely to become delinquent. It was observed that older farmers were more experienced and has a great deal of knowledge so it was recommended that the organization provides a lecture series to enhance the knowledge of younger farmers. Most farmers with large household size were not delinquent. This was due to many members of the household contributing to income. If the organization could provide greater economic opportunities to its members then the members would less likely to be delinquent. It was recommended that the organization provide lectures and seminars to improve attitude towards credit to lessen delinquency and that the organization provide incentives to members who have perfect attendance and to strictly require members to attend meetings regularly.

Language

English

Call Number

Thesis

Document Type

Thesis

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