The agriculture sector is the backbone of a country. However, this sector receives limited loan disbursement from commercial banks. In this context, the present study aims to explore the experiences of farmers utilizing agricultural credit and the challenges they face during the loan acquisition process. Adopting a qualitative approach, the study carried out in-depth interviews with seven farmers of Nepal. The findings reveal that farmers face challenges stemming from limited financial awareness and procedural hurdles. Additional difficulties include struggles with loan acquisition and repayment, family misunderstandings regarding using credit for farming, and obstacles in optimizing loanable funds within the broader context of credit management, project extension, technology transfer, and the creation of value chains through circular linkages. This study offers valuable insights for policymakers and practitioners in designing rational and impactful agricultural credit policies to promote sustainable farming in Nepal by highlighting the key hurdles farmers face in accessing agricultural loans. Keywords: agricultural credit, financial awareness, repayment struggle, credit management