Assessment of Financial Institutions Credits on Agriculture Sector Development In Tanzania: A Case Of Arumeru District
DOI:
https://doi.org/10.59645/abr.v14i1.58Keywords:
Agriculture, Financial Institution, Credits, Loan, Interest RateAbstract
The study is about the assessment of financial institutions credits on agriculture sector development in Tanzania. The study used descriptive research design. The study was conducted in Arumeru district. Quantitative technique was employed in this study. A total sample of 50 respondents was used and simple random sampling technique was deployed. Both descriptive and inferential statistics were used in analyzing the data with the help of SPSS. It was found that interest rate offered led to agriculture sector development where by farmers always choose bank with lowest interest rate. It was indicated that there is significant positive relationship between financial institution credits and agriculture development. It has also revealed that financial institution credits affects agriculture development. Furthermore, it was found that there is significant positive relationship between loans interest rate and agriculture development. The research advises farmers and cooperative stakeholders to insist farmers form self-help groups similar to cooperative institutions as a compatible source of agricultural finance in the rural area.
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