International Journal of Advanced Research and Publications

Impact Of Revolving Credit Fund On The Rural Poor Economy In Western Hararghe Zone: In Case Of Some Rural Woreda

Volume 5 - Issue 3, March 2022 Edition
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Author(s)
Tamiru Gabusho Ayana
Keywords
Loan, revolving, West Hararghe
Abstract
The study was conducted in West Hararghe zone; in case of some rural woreda to analyze impact of revolving credit fund on rural poor economy. To source of data primary data were collected from 120 members and 60 nonmembers of multipurpose cooperative. The secondary data were collected from institutions. The descriptive statistics were used to describe institutional and socio-economic characteristics of respondents. Multiple logistic models were used to analyze factors influencing average annual income and repayment performance. The amount of loan authorized to beneficiaries is not disbursed on time which may discourage farmers to demand revolving fund. About 54.00 percent of the sample respondents utilized loan fully for the purpose initially intended. Further, respondents revealed that lack of awareness; expenditure for consumption purpose and ceremonial expenditure were the main reasons for miss utilization of the revolving credit fund. It was identified out of respondent’s 80 percent were non-defaulters and 20 percent were defaulters.
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