Solving Methodoly for Unpaid Loans of Member of Muang Lablae Agricultural Cooperative Limited

Abstract

The objectives of this research were to 1) examine the general conditions, borrowing behaviors, and loan repayment practices of cooperative members; 2) investigate the problems and obstacles leading to loan default among members; and 3) propose guidelines for addressing overdue loan issues among members of Muang Lablae Agricultural Cooperative Limited.

This research employed a mixed-methods approach. 1) The qualitative component involved the entire population of 12 credit subcommittee members and credit officers. Data were collected through structured interviews. 2) The quantitative component targeted 932 cooperative members with outstanding loans as of 31 December 2024. A sample of 280 participants was determined using Yamane’s formula at a 0.05 margin of error and selected through simple random sampling. Data were collected using questionnaires. Statistical analyses included frequency, percentage, mean, standard deviation, and content analysis.

The findings revealed that 1) Most members were female, aged between 51–60 years, with lower secondary education. They typically had households of 3–4 members and owned approximately 5–10 rai of agricultural land, which they used for farming. Their annual income from both agricultural and non-agricultural activities ranged from 10,000 to 50,000 baht, with similar expenditure levels. Most had been cooperative members for 5–10 years, and 59.29% did not have savings or deposits. In addition to cooperative debt, 48% of household debt originated from village funds. Members typically borrowed 1–3 times per year and often took additional loans to repay previous debts, using collateral and guarantors. They chose to borrow from the cooperative due to membership status, lower interest rates compared to other sources, partial interest refunds, and effective guidance from credit officers. Most members accumulated funds to repay their loans in a lump sum and prioritized repayment to the cooperative over other creditors. 2) Factors contributing to loan default included: (1) high agricultural production costs borne by members; (2) damage to crops caused by pests, animals, and drought; and (3) other factors, namely declining agricultural product prices. Regarding problems and obstacles in credit operations, borrowers were unable to repay their loans to the cooperative or made repayments with delays. 3) Guidelines for addressing overdue loan issues include providing low-interest loans, extending repayment periods, applying credit assessment principles such as the 5Ps or 5Cs, conducting individual risk–return analyses, monitoring loan utilization to ensure alignment with intended purposes, enhancing agricultural knowledge, offering career guidance and support, and establishing reliable markets with fair prices to ensure that members can sell their products at a level that yields reasonable returns on investment.