This paper analysed empirically the relationship between credit sources and
agricultural zones in Edo State. The data used were collected from questionnaires
administered to four hundred and fifty respondent farmers out of which three hundred
and seventy three were valid. A simple random sampling was employed to select the
respondent farmers. This study applied a combination of Chi-Square and analysis of
variance to analyse the data. Chi-Square was used to establish a relationship between the
sources of credit and location of agricultural zones while ANOVA was used to examine
variations between zones and between problems. The problems encountered in processing
loan application include; high transaction cost, administrative bottleneck that leads to late
disbursement of loan. In securing credit facilities, the study also identified some problems
such as; inadequate credit information, bank stringent conditions, location of lending bank
and bureaucratic processes in the bank. These problems were found not to vary with
agricultural zones. It is advised that farmers need to develop more cooperative groups to
enjoy economies of scale.