Empirical Determinants of Traders Access to Credit in Ghana: Does Educational Literacy Level Matter?

Credit is highly required in different parts of the world, mainly as capital requirement for business start-up and expansion. The present study examines the determinants of traders access to credit in Ghana. The study relies mainly on primary data and applies the probit estimation technique to the dataset. The study finds that source of income, collateral security, household size and education is significant in determining traders’ access to credit. Based on these findings, it is recommended that financial institutions should encourage traders to upgrade their educational level on account and record keeping, since this will enhance their basic knowledge not only on their trading activities but also on financial transactions.