ROLE OF BANKS IN FINANCING AGRICULTURAL CO-OPERATIVES SOCIETIES
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ROLE OF BANKS IN FINANCING AGRICULTURAL CO-OPERATIVES SOCIETIES
ABSTRACT
This research project is an extremely important study on the role of Nigeria’s Agricultural Cooperative and Rural Development Bank. The study is driven by the need to determine the scope of agricultural cooperatives.
To tackle the research challenge, primary and secondary data were gathered. The data were collected via a questionnaire and an oral interview. The respondents were bank personnel who employed tables, frequency, and percentages to organise and present acquired data. Data analysis and interpretation yielded the following results:
1. The criteria for awarding loans to cooperatives are that they have an account holder, a feasible and bankable project, and be creditworthy.
2. NACRA has had a significant influence through FEAP, NACB’s micro and macro loans, and PBN loans to co-operatives.
3. Collateral securities make it easier to provide loans to farmers.
4. Insurance coverage is required to mitigate some of the risks associated with cooperative failure.
5. The level of reaction to ward loan facilities is really acceptable.
6. Co-operatives provide excellent loan management services.
7. When a loan is not returned, the guarantors are notified, and any mortgaged real estate is auctioned.
The study suggests that banks can provide financial support for the expansion of the cooperative sector.
Banks should support their farmers by providing agricultural loans that span all stages of agricultural production. Farmers should confer with agricultural specialists if necessary, and lending should be limited to agricultural pursuits.
The study concludes that NACRDB can make a significant contribution to the field of agricultural financing. It has shown to be an effective avenue for providing financial services, particularly lending to small farmers.
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