The problems of loan growth not on target : Case study Bank for Agriculture and Agricultural and Agricultural Cooperatives, Chok Chai branch

Abstract

The Purpose of this research were to study and find out the cause of unmet goal in loan growth and finding the solution in order to increase the effective loan disbursement in Bank for Agriculture and Agricultural Cooperatives (BAAC), Chok Chai branch.  The samples used in this research were 200 farmers who are the clients and 16 credit officers of financial institution. Questionnaire surveys were carried out for gathering data and information to perform statistical analysis to concern about frequency analysis, percentage, means, standard deviation and correlation between dependent and independent variables by chi square method. From the research, it was found that the majority of farmer’s clients who’s got the loan were small scale farmer, low education and low income. They need small amount of loan and the borrowing purpose only for agriculture activity even the financial products are variety and cover both agriculture, commercial, industrial, service and quality of life development. The research found that service marketing-mix affect to clients behaviour to choose BAAC’s services at maximum level especially product, price , selling, sales promotion and service process. For the credit officers, 93.8 percent thought that working process affected to loan disbursement target. The solution was focusing in increase the new customers in the group of medium to high educated young entrepreneurs who need high amount of loan. BAAC have to more focus on service and public relation on appropriate loan product to entrepreneur.