Agriculture business like other businesses is also dependent on credit for different production & marketing related activities. In India, generally the capacity of farmers to save and invest is very low. The agricultural productivity is low due to low use of inputs. The farmers therefore, need credit to increase productivity and efficiency in agriculture. This need is increasing over the years with the rise in use of fertilizers, mechanization and rise in prices. Agricultural Credit is the amount of investment funds made available for agricultural production from resources outside the farm sector. In other words, we can say that Agricultural credit refers to one of several credit vehicles used to finance agricultural transactions such as a loan etc. Financing is done specially adapted to the specific financial needs of farmers or their organizations.