DISCRIMINANT ANALYSIS OF SEASONAL AGRICULTURAL LOAN REPAYMENT BY SMALL-SCALE FARMERS IN TRANSKEI / DISKRIMINANT ANALISE VAN TERUGBETALINGS VAN SEISOENSLENINGS DEUR KLEINBOERE IN TRANSKEI

A linear discriminant model is used to identify loan and borrower characteristics associated with successful and default seasonal agricultural loans at the Agricultural Bank of Transkei in 1991. Results indicate that small-scale farmers with a proven credit history, higher repayment ability and collateral, and relatively more off-farm income were less likely to be default risks.