Abstract
One of the obstacles that has caused agricultural sector not to
reach significant and expected growth is shortage of short,
medium and long–term funds to finance various activities of this
sector. This study aims at investigating the economic impacts of
credits granted by Agricultural bank on farmers on Hirmand
region. The statistical population of the survey included 4691
farmers of Hirmand region and the sample size were 117 farmers
who had received loan from agricultural bank at least once during
2006-2011. The Sample was selected using simple random sampling
and questionnaires were distributed among them. The results from
t-Test showed that significant level for income manufacturing
variants was 0.000 and for investment and livelihood variants
were 0.014 and 0.077, respectively. This significantly levels suggest
that received loan from bank has increased income and production,
the living conditions of borrowers, economic profitability and
increased productivity.