Covid-19: payment terms scare farmers from micro-loans

By Sunday Ogundiran

Farmers have rejected loan facilities proposed to them by micro finance banks as they are afraid they may not be able to pay back the loan considering the present state of the economy.

 The farmers who spoke to ECHONEWS that they prefer to manage their own finance rather than taking bank loans even with lower interest rate.

One of the fish farmers, Mr. Joe Omotosho said though the requirements by the banks and their interest rates are fair enough but the unstable economy discouraged him from taking loan from any micro finance bank.

According to some micro finance banks have started approaching the farmers to access their loans.

He said many of the farmers are not ready to access the loans from micro finance banks at the present time.

Also speaking, the Managing Director of Ola Farm, Ejigbo, Mr. Muftaudeen Ola said the farmers refused to access the loan offered by micro finance banks because they don’t need the loan for now.

He said since the prices of farm inputs have skyrocketed, the farmers believed that taking loans to run their farms would affect the business, saying it is better for them to maintain whatever they have currently.

He believed that the 5 per cent interest rate proffered by the banks may kill their business at the present time.