Lift Above Poverty (LAPO) Micro-Finance has expressed concern over the Irregular Repayment of Loans by many Farmers.
Susan Adoga, the Loan Recovery Officer, made this Observation during a Stakeholders’ meeting organized by the International Fund for Agricultural Development (IFAD) in Makurdi yesterday.
According to Adoga, the Inconsistent repayment behavior of Farmers has led to a reluctance among many Financial Institutions to Invest their Resources in Farmers, whether in the form of Cash, tools, or Agricultural Inputs.
Meanwhile, Rosemary Iorngirim, the Rural Finance Officer of the IFAD-Value Chain Development Programme (VCDP), advised Farmers to utilize their Loans for the Advancement of their Agricultural activities rather than diverting the Funds to other Ventures.
Iorngirim emphasized that Investing Borrowed Funds in Farming activities would Facilitate easier repayment.
Moreover, timely repayment would also make them eligible for higher Loan amounts to boost their Farming Businesses.
Furthermore, she encouraged Farmers to Insure their Farms against Natural disasters, ensuring that they could receive compensation from Insurance Firms in case of unforeseen circumstances.
Iorngirim also emphasized the Importance of Forming Partnerships among Farmers, off-takers, and Financial Institutions.
She highlighted that such Partnerships would amalgamate Resources, skills, and expertise to address common challenges that may exceed the capacity of Individual Organizations or Groups.
