Credit is an important instrument in enabling farmers to acquire command over the use of working capital, fixed capital and consumption goods. In the wake of the Green Revolution, credit requirements have increased for both inputs for crop production and farm investment. The small farmers, with a limited ability to finance investment, are the logical target group for loans advanced by the credit institutions. In view of the large credit requirements for lumpy investments, large farmers also need to be served by the credit system. Due to the important and increasing role of the non-farm sector as a source of employment in rural areas, the need to cater to credit requirements of this sub-sector has also been a motivating factor for the reorientation of the rural credit system in Pakistan.