Abstract

The aim of study is to establish relationship between loan accessibility, repayment capacity, credit terms, and farmers' socioeconomic characteristics using of metrics to extract an indicator for targeting credit financing to rural households. Design/methodology/approach: The goal question metric GQM paradigm is used to select a sample of 30 settings in the Boane district. The paper adopted validation research on how to perform controlled experiments with small adaptations and involved descriptive, correlation, regression analysis approaches. Data were analyzed using the R, and SPSS statistical model, and Pearson correlation where used to examine the nature of the relationship between the variables. Findings: Results indicated that there was a significant positive correlation ( r =0.79389) between the credit terms and loan accessibility metrics, while the relationship between credit terms and repayment capacity reveals a strong positive correlation and statistically significant( r =0.51525). Conclusions between loan accessibility and repayment capacity metrics indicate that there is a weak and statistically significant positive correlation ( r =0.30795). The multiple regression analysis shows that the credit terms and farmers' socioeconomic characteristics predicted a variance of 61.7% and 60.8%, respectively, in loan access. Practical implications: The study is relevant because several donors, practitioners, consultants, loan officers, and microfinance institutions can revisit the borrowing decision, determine the efficiency and feasibility of providing useful information on the business's ability to sustain and performance of microcredit institutions. Originality/value: The research seeks to establish relationships of four determinants of access to credit to extract an indicator with emphasis on repayment capacity, credit terms, loan accessibility, and farmers' socioeconomic characteristics among agribusiness cooperatives and microcredit institutions in Mozambique.