Mastergp
Verified member
Potential investors or companies normally have problem of sourcing fund for their business these problem are:
Interest rate:
Interest rate is the rate at which farmers can borrow money from bank. that is the amount of interest a family will have to pay on the money borrowed. High interest rate discourages borrowed while low interest rate encourages borrowing. There fore, farmers cannot borrow when the interest rate is too high.
Collateral security:
This is what the banks and other financial institutions will want borrower to present before a loan can be given. Such securities include landed property, buildings etc. Most farmers do not have securities and therefore cannot borrow money.
Lack of farm records:
Farmers lack good farm records of all their activities which can be used to assess their credit worthiness.
High level of loan defaulters:
Farmers may not be able to repay the principal, let alone the interest charged in case of natural disasters.
Lack of awareness :
As a result of high level of illiteracy among farmers, they are hardly are of the existence of loan facilities in banks.
Interest rate:
Interest rate is the rate at which farmers can borrow money from bank. that is the amount of interest a family will have to pay on the money borrowed. High interest rate discourages borrowed while low interest rate encourages borrowing. There fore, farmers cannot borrow when the interest rate is too high.
Collateral security:
This is what the banks and other financial institutions will want borrower to present before a loan can be given. Such securities include landed property, buildings etc. Most farmers do not have securities and therefore cannot borrow money.
Lack of farm records:
Farmers lack good farm records of all their activities which can be used to assess their credit worthiness.
High level of loan defaulters:
Farmers may not be able to repay the principal, let alone the interest charged in case of natural disasters.
Lack of awareness :
As a result of high level of illiteracy among farmers, they are hardly are of the existence of loan facilities in banks.
