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Credit is a life blood of small holder farmers in developing countries. Delivering productive credit to the rural poor has been a hotly pursued but problem-plagued undertaking. Providing low-cost, efficient credit services and recovering a high percentage of loans granted are the ideal aims in rural finance. However overdue and default of the loan discouraging the lending institutions in offering such services. Hence investigation of the various factors determine credit use and loan repayment is of great importance both for policy makers and the lending institutions to improve the lending services further. Therefore, this book has been designed based on the research work on credit utilization and repayment pattern of small holder farmers in northern Ethiopia. Different econometric models were used as a tool for the research work. Hence this book will help the scholars and students who are interested to learn more about the strategies and techniques of analysis. In addition, policy makers can use this as a bench mark for framing policies.