Abstract
ABU MОНАМДАAD ANWARUL KARM. University of the
Philippines at Los Balos, March 1976. Frofile and Loan Repауment Behavior of Small Rice Farmer-Members of Samahang Nayon
in Laguna Province, Nepublic of the Philippines. Major Professor:
Dr. Obdulia F. Sison.
The specific objectives of the study were: (1) to pinpoint
some socio-economic factors which significantly influenced the
borrowers' repayment function; (2) to assess the impact of some
selected determinants on the borrowers'loan repayment; and (3)
to frame a model of loan repayment behavior for small rice farmermembers of Samahang Nayons.
The investigation was undertaken in fifteen Samahang Nayons
selected from six municipalities in Laguna Province. Three of
these municipalities were lowl nd and three were upland ricegrowing areas. Respondents in the study were 274 small rice
farmers (owning less than 5 hectares of land), especially the male
members of Samahang Nayons who obtained seasonal crop
production loan from rural banks for the dry season 1974-75.
Of the six selected variables, the borrower's attitude towards
loan, gross cash receipts and schooling significantly influenced the far mer-borrowers in deciding to settle crop production loang.
In other words, a unit increase in the borrower's attitude towards
loan, gross cash receipts and schooling increased loan repayment
performance by. 20S, .097 and.075 units, respectively. These
three identified factors were found to be essential in loan repayment function.
The other three factors, namely, loan and farm supervision,
loan collection pressure and transportation facilities, stimulated
the borrowers to earn more cash through rice farming and all
possible off-farm sources.
Loan and farm supervision appeared to be greatly needed
by the unschooled borrowers and borrowers with minimal years
of schooling to enable them to understand the loan expenditure
process and improved rice technology.
Loan supervision with extension service and farmer'S
schooling both assisted in deveiuping in the borrower a positive
attitude toward loan repayment.
In the model derived, the loan repayment behavior of the
small rice farmer-members of Samahang Nayons in Laguna was a
function of the borrower's attitude towards loan, gross cash
receipts and level of schooling, which in turn were stimulated by
loan and farm supervision (regulatory and extension service), loan
collection pressure and transportation facilities.