Factors Affecting the Loan Repayment of Rice Farmers in Ragay

As be observe in the Philippine situation the frequent problem and also non a new issue in land sector is the measly productivity and small income of sodbusters which can be attri excepted to their lack of bully. many farmers have no enough savings or cash on make pass to purchase new inputs including machineries, chemicals, pesticides and high obedient varieties of seeds which go out answer them to improve their pay because these inputs argon usually expensive. As an declaration to this dilemma they rely on trust and the proliferation of different assign institutions is a broad inspection and repair to them.The citation have of the farmers were be experienced especially those who ar plight in sieve action because it necessarily a large amount of bills for investment. These course address entry needs of the rice farmers were being bequeathd by the two types of institutions namely the ceremonious and in stately impart institutions. The formal denot ations of credit rating include the banking and non-banking institutions. The mere examples of it are the campestral bank, commercial bank, and cooperatives (Duran 2001) while the escaped sources are the private moneylenders, relatives, friends, traders and millers.With the availability of the credit institutions in rural areas, it al economic crisiss the farmers to maintain and sustain their productivity since income in this country is generally small-scale (Cacho, 1995). Credit can be delimitate as a means of entrusting and believe from and since trust is an important ingredient in providing it, the lenders rely on a yell of the borrower to pay in the future (Guevarra, 1995). only it is a problem encountered by these formal and informal lending institutions that the farmer-borrowers were not equal to(p) to pay their obligation at the evaluate time.Statement of the Problem With a totality farm area of much or less 23,036 hectares almost 2,182 hectares in Ragay, Camarine s tire is being planted with rice and the need for credit can be notice in its production. It is because important that the credit institutions proliferate in this area to help and assist the rice farmers. The government intervenes by dint of the promotion and development of the organization that will provide agricultural loan so as to improve the income of rice farmers, which include the development of the rural bank and cooperatives in the area.Together with the expansion of the formal institutions the informal lenders also lead and gave a world-shaking role in alleviating the lack of gravid by the rice farmers. With this expansion of credit sources the problem, which cannot be avoided by these institutions is the high pct of loan delinquency by the borrowers. though the high collection performance or high quittance rate would not necessarily mean the ultimate throwaway of successful work of the institutions, a low refund rate adversely affects the operation and stabilit y of the different lending agencies. in addition through loan default, credit institutions in Ragay were not able to improve and expand their services and sometimes lead to affliction in providing efficient services. Significance of the contract Lack of capital or unsatisfactory fund of the rice farmers in Ragay, Camarines tire hinders their increase in production and income. They are not able to purchase production inputs and adopt new technologies to produce more output for sale and a credit as a source of capital is a big help to them but repayment of their loan is a pressure level problem to the lending institutions in this area.This pack will focus in increase the repayment rate or change magnitude the non-repayment if not totally eliminating it to help the lending institutions in improving their services for the rice farmers. This study will also provide data that will help them to improve their loan collection and supervision for their sustainability though improving st rict rules and regulation regarding borrowing. For the farmer borrowers, this study will help them to discover the factor which affect their repayment so as they will able to determine for ways that will minimize their low or no-repayment of loans.It will also help them to understand that certain factor/factors of repayment decrease their capability of repaying the loan and therefore there is a need for them to do something to minimize those factors, which can be controlled. Objectives of the field The general objective of the study is to break up the factors touching the loan repayment of rice farmers in Ragay, Camarines Sur. The specific objectives are the hobby 1. o discern the common credit sources of rice farmers in Ragay, Camarines Sur 2. to identify the factors affecting the rice farmers choice of credit source 3. to determine the loan use of the rice farmer-borrowers 4. to determine the relationship of the factors affecting the repayment performance of the rice farmer borrowers 5. to determine the problems encountered by rice farmers in loan repayment and 6. to compare the repayment performance of rice farmers by source of credit.