Impact of Microfinance Bank Credit Scheme

The purpose of this chapter is to examine impact of microfinance bank credit scheme on maize farmers in Gombe State, Nigeria, using data from 90 randomly sampled maize farmers in Gombe State. The study showed that majority of the respondents (53.33%) accessed amount of credit ranging between 30,000 and less than 50,000 Naira. Majority of the farmers (85.56%) used their credit for the purpose of farm production. Majority of respondents (58.89%) recorded in increase in maize output as result of the intervention of the microfinance credit scheme. Majority of the respondents (86.67%) repaid credit collected. The microfinance credit scheme intervention significantly improved the output and income of the respondents. Ineffective organizational structure of the credit institutions constituted the major constraint in accessing microfinance credits. Microfinance credit facilities extended to the farmers should be improved upon in both quantity and quality. The organizational structure of microfinance institutions should be reorganized to reduce bottlenecks in accessing credits.