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Agricultural loan plays a vital role in economic transformation and rural development. This role will be impossible without a virile and active loan
scheme characterized by good practices in terms of disbursement and repayment. This study determines the factors affecting loan repayment among
beneficiaries of Government Guaranteed Agricultural Loan Scheme (GGALS) in Osun State, Nigeria. The study was based on data from primary
and secondary sources. Primary data were obtained from 180 GGALS beneficiaries selected using a multi-stage sampling technique as well as the
records of Osun State Agricultural Development Corporation. Data were analyzed using descriptive statistics, test of difference of means and Tobit
regression model. Descriptive statistics revealed that most (86.9%) of the beneficiaries were married, 70.8% were male and 89.3% were literate
with a mean age of 46 years, an average of 14 years farming experience and a mean household size of approximately 6 persons. The Tobit model
showed that farming experience (p<0.05), poultry enterprise (p<0.01), fishery enterprise (p<0.01), piggery enterprise (p<0.01) and borrowing
frequency (p<0.01) were significant factors that positively influenced loan repayment while household size (p<0.01), disbursement lag (p<0.01)
and non-farm expenses (p<0.05)) negatively affected loan repayment. Therefore, the study recommended among others that, the lending institution
should design a better lending strategy focusing particularly on prompt loan disbursement so as to further improve loan repayment performance.