ASSESSMENT OF FINANCIAL INTITUTIONS CREDITS ON AGRICULTURE SECTOR DEVELOPMENT IN TANZANIA

Abstract

The study is about the assessment of financial institutions credits on agriculture sector development in Tanzania, agriculture plays a key role in the development of any country At the world, in Tanzania agriculture contributes about 26.7% of the gross GDP of the country. This study has focused on assessing financial institutions credits on agriculture sector development in Tanzania. The study used a descriptive research design. The study was conducted in Arumeru district. Quantitative technique was employed in this study A total sample of 50 respondents was used. This study employed simple random sampling technique. Both descriptive and inferential statistics was used in analysis of this study with the help of SPSS. The interest rate offered led to agriculture sector development. Farmers always choose bank with lowest interest rate. It was indicated that there is significant positive relationship between financial institution credits and agriculture development. It has showed that financial institution credits affects agriculture development. It has found that there is significant positive relationship between loans interest rate and agriculture development. It has showed that loans interest rate affects agriculture development The study recommends that farmers and cooperative stakeholders insist farmers form the self-help groups. like cooperative institutions as the compatible source of agricultural credit in the rural area,