Agriculture is the backbone of Nepalese economy. The importance of agriculture in the economic development of Nepal is very high. The agriculture sector in Nepal contributes approximately 33 percent of the GDP and employees an estimated 78% of total labour force. Therefore, agriculture plays a very important role in Nepalese economy.
Agriculture Finance in general and institutional agricultural finance, in particular, are becoming more important today than ever before. To increase production and productivity varieties of seeds, fertilizers, insecticides must be used. Modern inputs can be used if they are provided on time and through a credit system offering loans at a reasonable rate of interest. Agricultural credit becomes more important, particularly when the agricultural development process is shifting to modern methods and packages of practice.There are various sources of the agricultural finance they are non-institutional sources and the institutional sources .The various non -institutional sources could be Moneylenders and landlords ,Traders and private borrowings and the various institutional sources are Cooperative societies ,Agriculture Development Bank, Nepal (ADB/N),commercial bank ,Grameen Bikash bank and other NGo's and other financial institutions.