Mediating Role of Social Norms on the Relationship between Perceived Behavioral Control and Credit Utilization Intention

Credit utilization enhances agricultural productivity to trigger rural development, but little is known about the credit utilization intention of the smallholder farmers who are the main borrowers in the areas. This study assessed the mediating role of social norms on the relationship between perceived behavioral control and credit utilization intention among borrowers under savings and credit cooperatives arrangements in Soroti district in Eastern Uganda. Results of structural equation modelling of perceptions of 257 smallholder farmers borrowers, showed up to 65% of credit utilization intention to be predicted by attitude (β=.484, t-value= 4.294, p<.05) and perceived behavioural control (β=.384, t-value=2.299, p<.05). Bootstrap results indicated the mediation effect of perceived behavioral control and credit utilization intention . This leads to conclusion that attitudes and perceived behavioral control are important predictors of smallholder farmers’ intention to use credit in agricultural production. It is therefore recommend that governments should incorporate social and Behavior Change campaigns as part of the credit programs. Key words: Credit Utilization, Theory of Planned Behavior, SACCO, Uganda