Determinants of Loan Application and Level of Satisfaction of Farmer-Borrowers of Different Lending Institutions in the Fourth District of Nueva Ecija

Abstract

This study aimed to identify the determinants of loan application of farmers and their satisfaction level on the different lending institutions in fourth District of Nueva Ecija. Out of eight Municipality, seven Municipality were included in the farmers interview, from 736 total population, 259 respondents were selected using slovins formula. Respondents was come from three lending institution namely; Land Bank of the Philippines, Rural Bank of San Leonardo, and Tulay sa Pag-unlad Inc. The respondents were selected based on their socio demographic characteristics that would fall on the interest of the study, farmer respondents were identified based the data from the Office of the Municipal Agriculturist of the Fourth District of Nueva Ecija. Socio-demographic characteristics of the farmer respondents were significant to their level of satisfaction, wherein demographic characteristics affects the decision of the borrower in availing for loan. The better the demographic characteristics of the borrower the more satisfied they are on the loan programs offered by their respective lending institution in addition the more acceptable the determinants the higher the satisfaction of the borrower. Relationship of determinants and levels of satisfaction shows that, there is significant relationship between loan determinants and level of satisfaction. There is strong positive correlation between the two variables wherein the loan determinants were more acceptable, the level of satisfaction increases. Likewise, the higher the acceptance of determinants of loan application the higher the levels of satisfaction of the respondents.