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DOI Prefix 10.20431 |
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Impact of Training & Development of Small Scale Farmers for the Reduction of Non-Performing Loans in Microfinance, Evidence of Pilot Study in Lahore Agricultural Sector - Pakistan
Mirza Muhammad Ali Baig1, Chaudhary Abdul Rehman2, Nisar Ahmad Bazmi3
2.Professor Business School, Superior University, Lahore-Pakistan.
3.PhD Scholar Superior University, Lahore-Pakistan.
Citation : Mirza Muhammad Ali Baig,Chaudhary Abdul Rehman,Nisar Ahmad Bazmi, Impact of Training & Development of Small Scale Farmers for the Reduction of Non-Performing Loans in Microfinance, Evidence of Pilot Study in Lahore Agricultural Sector - Pakistan International Journal of Managerial Studies and Research 2016 , 4(12) : 32-49
Capacity building through training is now considered a vital component in maintaining competitiveness in the agricultural sector of less developed country like Pakistan. The study is conducted on beneficiary farmers at grass root level interested in getting loans from banks for crop production techniques and financial management inter alia. This was aimed at improving the loan repayment performance of the project beneficiary farmers. The sub-urban area of district Lahore has been used as a pilot study to mainly assess the effects of training on loan repayment among the beneficiary small scale farmers regarding Agricultural and Micro Financing facilities from Banks & Specialized Financial Institutions. Specifically, the study sought to identify the credit facilities and management strategies used by the State Bank of Pakistan under this project the Farmers Financial Literacy Program determine the production training needs of the beneficiary farmers and also examine the content and quality of the training given to the farmers prior to loan disbursement. Questionnaires were administered to collect data from 150 respondents, sampled using the Judgmental or Purposive Sampling Technique. The data collected were analyzed using the SPSS-20 software and the descriptive statistical tools of frequency, regression and correlation for relationships of variables have been applied. The results showed that farmers obtained higher crop yields resulting from the application of the crop production methods trained in. It is recommended that the State Bank of Pakistan (SBP) shortens the loan processing time between application and disbursement to about two weeks to avoid diversion of loan funds. The State Bank Pakistan also needs to improve upon its frequency and timing of monitoring and recovery of the funds disbursed under the project. The State Bank Pakistan should also consider including in its training regime effective marketing strategies to enable the farmers sell their produce and pay off the loan in time to minimize Non-Performing Loans.