Study on factors affecting farmers’ accessibility to bank credit in the South Central provinces

Abstract

 The purpose of this study is to identify factors affecting the access to bank credit of famers in the South Central provinces, from that, it proposes some recommendations which are to improve access to capital for farmers in South Central region in the coming time. The study is conducted from a sample of 1,073 customers working in the field of agricultural in communes of 8 provinces of South Central. Using the Binary Logicstic model, the results show that there are 5 factors affecting the accessibility of capital of farmers in rural areas in the South Central region: Borrower mentality; Ability to access loans; Credit policy of the bank; Bank service capability and Objective factors the external environment. In which, the credit policy factor has the largest impact.