EFFECT OF COHESION ON LOAN REPAYMENT IN FARMERS’ COOPERATIVE SOCIETIES IN DELTA STATE, NIGERIA

Abstract

This study was carried out in Delta State to assess the effect of cohesion of farmers’ cooperative societies on loan repayment among members in Delta State. The members subscribed to their respective cooperative societies in order to easily access credit, extension service and inputs at cheap price. Other reasons were for direct marketing of produce; price determination and exchange of ideas/experiences. The members were generally highly satisfied with loan repayment rate of members. The various farmers’ cooperative societies were highly cohesive generally. The various cooperative societies were highly satisfied with their respective management. The members of the cooperative societies were committed, attracted to the cooperatives and involved in the groups’ activities. Their individual and group goals were being met and still want to be members of their respective cooperative society. An almost perfect positive relationship between rate of loan repayment perception and cohesion. It is therefore recommended that extension agents should take advantage of the effect of cohesion on loan repayment to promote cohesion in up coming cooperative societies; executives of cooperative societies should encourage cohesion; and extension training for cooperative societies’ executives should include group issues.