Attitude of Farmers, A Key Factor For Accessing Loans From Credit Facilities-Dr. Apotey

The Upper Manya Krobo Rural Bank Somanya branch Manager, Dr. Odeh Apotey Gabriel has disclosed to Rite Morning Ride that, the behavior and character of farmers are mostly considered when financial and agriculture friendly institutions give out credit facilities and loans.

Farmers go through difficulties in their bid to contract loans from credit facilities. But according to Dr. Odeh, some farmers are not reliable in their repayment of loans given to them, stating a number of difficulties banks and financial institutions go through in recovering their moneys.

“The reasons why farmers find it difficult accessing credit facilities and loans are that they (farmers), are not reliable and divert loans for personal use,” he told the host, Captain Adabugar.

In Ghana, farming is a seasonal activity and farmers mostly in rural areas may not have bank accounts to enable them secure trouble-free loans.

The financial Economist and lecturer, however said, Upper Manya Krobo Rural Bank requests for collateral from farmers mainly for proper credit appraisal before loans are given out. That not withstanding, some farmers still seek for loans under the pretext of farming but later divert it for other purposes.

“Some farmers meet the collateral need under the pretext of seeking for a loan for agricultural development but default on payment of the loan.”

Dr. Odeh Apotey Gabriel revealed that their observation as a bank was that, farmers are not able to create harmonious and united groups to promote issues of concern on the farmers’ front. Others include land tenure litigation issues and land leasing challenges.

According to the bank manager, financial institutions have lost interest in investing into the agriculture sector and have diverted their resources and portfolios into different business which are more credit appraisal friendly and more profitable businesses to be invested into.

Source: Prince Paul Amuzu/ritefmonline.org