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Comparative analysis of prescribed and actual interest rates of the Anchor Borrowers’ program in Imo State, Nigeria

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Abstract

Borrowers pay additional fees, besides interest, when borrowing money. Cost of borrowing therefore has an add-on effect on the interest rate a borrower pays in the process of raising funds. This study therefore focused on comparative analysis of the prescribed and the actual interest rates of the Anchor Borrowers’ Program in Imo State, Nigeria and thereby informs and influences policy. Purposive and simple random sampling techniques were adopted in the selection of sixty smallholder farmer participants in the Anchor Borrowers’ Program in Imo State. Descriptive and inferential statistics were used in data analysis. The study found that there is a statistically significant difference between the prescribed interest rate and the actual interest rate paid by the participating farmers in the Anchor Borrowers’ Program in Imo State. It is recommended that the program should be periodically monitored and evaluated for the overall effectiveness of the program.

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  1. Imo State UniversityIMSU JunctionImo State, Okigwe Road, Owerri, Nigeria

    Augustine Odinakachukwu Ejiogu

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  1. Augustine Odinakachukwu Ejiogu
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Correspondence to Augustine Odinakachukwu Ejiogu.

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Ejiogu, A.O. Comparative analysis of prescribed and actual interest rates of the Anchor Borrowers’ program in Imo State, Nigeria. J Financ Serv Mark 26, 122–128 (2021). https://doi.org/10.1057/s41264-021-00089-x

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  • DOI: https://doi.org/10.1057/s41264-021-00089-x

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