Indian economy is usually described as an agricultural economy .The agricultural contribution to India’s national income has always been very large. At present nearly 15.4 % is the share of agriculture and allied activities in our GDP and Bihar contributes about 20% to the Gross State Domestic Product (GSDP). Agriculture thus has a very big share in India’s national income. At present agricultural sector in India are facing many problems. Provision of adequate, timely and cheap finance is an important aspect for the development of agriculture and related to agricultural activities. Agriculture is a productive occupation and one of its essential inputs is finance. This may be provided by the cultivator himself or like other enterprises; he may borrow it from someone else and repay it from the output of the field in which it has been invested.  Agriculture finance is an important area of rural finance dedicated to financing in agricultural related activities such as, production, processing, distributing and marketing. These paper discuses the conceptual background of agricultural finance, need of agricultural finance in India, sources of agricultural finance and analysis of agricultural credit inflows in Bihar.

KEYWORDS:  Agriculture, Finance, KCC, Institutional and Non – Institutional Sources.