The alleviation of poverty continues to be the central issue in development discourse in the present day. Marginal and Small farmers are facing several constraints in the twenty century. Major constraints that are faced by small and marginal farmers are- poor land accesses, poor credit accesses, poor accesses to inputs, high production risk and low insurance coverage and limited market accesses. The present study is based on secondary data collected from 59th Round National Sample Survey and Agricultural Census (2005 and 2010). We have tried to concentrate the study at national level as well as the state of West Bengal and we have captured the present conditions regarding credit market in both the cases. Secondary data reveals that rate of indebtedness is decreasing with an increase in land holding. On the other
hand small and marginal farmers are making credit from the non-institutional agencies such as relatives, traders, money lenders which are in greater portion compare to not only large farmers but also compare to institutional credit market. On the other hand the large farmers are taking loan from banks, cooperatives and micro credit. The only purpose for the loan for the small and marginal farmers is for daily family consumptions followed by current production expenditure and capital consumption at national level.