The Effect of Factors Inhibiting Credit Access to Small-Scale Rice Farmers’ Livelihood in Mbarali District.

Abstract

Despite the available financial institutions in Tanzania, yet the lives of majority small-scale farmers had not been to expectation. Most of small-scale farmers are still using poor farming equipment which had accelerated low crop yields. Therefore, the aim of the research was to assess the Effect of factors inhibiting credit service access on the livelihood of small-scale rice farmers. The research employed a descriptive design whereby both qualitative and quantitative methods were applied. A sample size of 80 small-scale rice farmers were used in this study randomly selected from the population of rice producers. The questionnaire and interview methods were used in data collection. The findings indicated that farm credit charges, credit sources, interest rates, loan application procedures and collateral requirement were suggested as factors inhibiting small-scale farmers from accessing credit facility. Finally, the study recommended that, the government of Tanzania through the ministry of agriculture in collaboration with other development partners also need to take deliberate initiatives by introducing suitable agro-financing policies that carter to promote the development of the agriculture sector which employs majority of the people than other sectors of the economy.