Determinants of credit demand by smallholder farmers in Morogoro, Tanzania

Agriculture plays a great role in the economy of many countries including Tanzania where majority depends on agriculture-based activities for their livelihoods. Access to agricultural credit is vital growth and development sector Tanzania, hence financing agriculture key issue rural development. Despite effort Government make services available affordable its majority, access among smallholder farmers still very low. The aim this study was assess determinants demand by farmers. A multistage sampling technique employed study. Ten (10) wards were selected with 30 respondents   from each ward making sample 300 binary logistic regression model used analyze influence farmer’s socio-economic characteristics demand. maximum likelihood estimates revealed that determined age respondents, gender, number years schooling, household size, distance, awareness, collateral, type crops, farm contact extension services, membership economic groups, location interest rate. However, gender respondent, collateral rate though statistically significant, had negative influences decision credit. recommends Microfinance Institutions (MFIs) should be strengthened ensured minimum bearable formalities Tanzania. Key words: Credit, demand, farmers, agriculture, microfinance institutions.