Factors affecting access to formal credit by small holder farmers in An Giang Province

Abstract

This study was conducted to determinefactors that affect the access to formal credit by smallholder farmers in An Giang province. Applying binary logistic regression analysis on a sample of 210 households, we found that the access to formal credit by these households are affected by five factors, namely total value of household assets, participation in organizations, demand for loans from credit institutions, loan guarantees and accumulated income, in which the demand for loans has the greatest impact. From the regression results, we built a model to forecast the access to formal credit by households with 93.8%. precise forecastprobability.