SOCIOECONOMIC DETERMINANTS OF ACCESS TO MICROFINANCE CREDIT AMONG MEMBERS OF AGRICULTURAL COOPERATIVES IN ANAMBRA STATE

Abstract

This study titled Socioeconomic Determinants of Access to Microfinance Credit among Members of Agricultural Cooperatives, investigates the factors influencing agricultural cooperatives' access to microfinance credit, with a focus on socioeconomic and demographic characteristics. The study aims to examine the role of factors such as education, income levels, and financial literacy (Objective 1), as well as demographic factors like gender, age, and household size (Objective 2). Anchored on Social Capital Theory, the research employed a mixed-methods approach, combining quantitative and qualitative data collection. A descriptive survey was conducted among members of agricultural cooperatives in Anambra State, Nigeria, with 370 respondents chosen through random sampling. Data were analyzed using descriptive statistics and multiple regression analysis. The findings reveal strong correlations between socioeconomic factors such as family size, farmland size, agricultural experience, and farm income, which significantly influence access to microfinance credit. Demographic factors, including agricultural zone, gender, marital status, and education, were also found to impact credit access, with education emerging as the most influential factor. The study concludes that targeted interventions, focusing on financial literacy and addressing gender and educational disparities, are essential for improving financial inclusion. The study recommends prioritizing agricultural cooperatives with favorable socioeconomic characteristics for credit access and tailoring financial products to meet the specific needs of underrepresented groups.