Research
Experimental and Theoretical Expansion of Access to Credit among Rural Farmers: Case Studies in Boane District, Mozambique
The aim of study is to establish relationship between loan accessibility, repayment capacity, credit terms, and farmers' socioeconomic characteristics using of metrics to extract an indicator for targeting credit financing to rural households. Design/methodology/approach: The goal question metric GQM paradigm is used to select a sample of 30 settings in the Boane district. The paper adopted validation research on how to perform controlled experiments with small adaptations and involved descriptive, correlation, regression analysis approaches. Data were analyzed using the R, and SPSS statistical model, and Pearson correlation where used to examine the nature of the relationship between the variables. Findings: Results indicated that there was a significant positive correlation ( r =0.79389) between the credit terms and loan accessibility metrics, while the relationship between credit terms and repayment capacity reveals a strong positive correlation and statistically significant( r =0.51525). Conclusions between loan accessibility and repayment capacity metrics indicate that there is a weak and statistically significant positive correlation ( r =0.30795). The multiple regression analysis shows that the credit terms and farmers' socioeconomic characteristics predicted a variance of 61.7% and 60.8%, respectively, in loan access. Practical implications: The study is relevant because several donors, practitioners, consultants, loan officers, and microfinance institutions can revisit the borrowing decision, determine the efficiency and feasibility of providing useful information on the business's ability to sustain and performance of microcredit institutions. Originality/value: The research seeks to establish relationships of four determinants of access to credit to extract an indicator with emphasis on repayment capacity, credit terms, loan accessibility, and farmers' socioeconomic characteristics among agribusiness cooperatives and microcredit institutions in Mozambique.
Metrics and Indicators to Aid in the Financing of Agricultural Loans to Rural Families: A Systematic Review
The use of indicators provides several benefits among which the effective evaluation in the financing of agricultural loans to borrowers and also the support to the credit manager and portfolio in making strategic decisions. Despite the relevance of using metrics to aid in the financing of agricultural credit given the diversity of the existing business model, organizations have neglected their practice. Reasons for this fact include: (i) although access to credit is an significant factor in the adoption of agricultural technologies and increased agricultural incomes among rural farmers, are generally not sufficiently mature to make use of measurements or 2) researchers are not yet widely aware of the need for exploratory studies that identifies a mechanism to propose an agricultural credit financing strategy based on indicators through the analysis of a set of metrics. In this context, this article aims to conduct a systematic review to collect evidence on the existence of metrics and indicators that are specific for financing agricultural loans to rural families. The study produced 64 articles selected from the current literature and were not repeated because they were relevant. After the initial filter, 42 were pre-selected to identify potential primary studies by reading the title, summary, and conclusion using the PICO method (population, intervention, comparison, and outcome) and a new subset by the reading criterion in depth by the total reading of the article. Those who presented consistent information about metrics and indicators for agricultural credit financing remained. In this second stage (final selection) 18 studies were selected for a detailed comparative analysis.
