In a world where significant number of people barely survives on less than a dollar a day, micro-credit offers them a unique opportunity to engage in small businesses or improve their agricultural production. Hence, this book is mainly sought to assess the determinants of rural households'' micro-credit utilization and on time loan repayment performance. When the issue of economic growth and development of the country is raised, one has to take in to account the performance of the smallholder farmers. Reducing the challenges farmers are facing and enabling them to utilize their potentials can help accelerate achieving the required change in their livelihoods. Demographic, social, economic and institutional factors are supposed to determine the performance level of micro-credit users in terms of proper use of loan and on time repayment of it. Therefore, due attention is required by lending institutions and policy makers in designing rural development programs in general and rural financing in particular to achieve the intended change in the living standard of the smallholder farmers.