Abstract
Financial requirements of the farming sector have increased tremendously over the last few decades due to the
extended use of fertilizers, biocides, improved seeds, mechanization etc. The study in hand was carried out to
check the impact of credit on the productivity of wheat crop in District Lahore, Punjab, Pakistan. United Bank
Limited (UBL) was selected as a representative of the institutional credit sources. Primary data were collected
through a well structured questionnaire by dividing the district into three strata. Two villages were selected
randomly from each stratum and then out of the list of loanees provided by the UBL, ten were randomly
interviewed from each village. An equal number of non-loanees were also selected for the purpose of comparison.
Multiple regression analysis was carried out for making of analysis. Findings showed that agricultural credit plays
an important role in facilitating the transformation of agriculture and raising the participation of farmers in
production process.
