The main objective of this study is to determine factors affecting access to credit among small scale irrigation user farmers. The study used both primary and secondary data. The primary data were collected through structured interview questionnaire from 329 irrigation user farmers from two kebeles. The sample households selected by using multistage random sampling method. The study used both descriptive analysis and econometrics models. Logistic regression method is applied to examine factors that affect access to credit. Based on the econometrics estimation result, cost of irrigation technology, households attitude towards risk (risk), income from irrigation, lending procedures, repayment period, age of the household (age) and livestock ownership were important factors influencing smallholder farmers access to formal credit in the study area. farmers face challenges to access credit; repayment period, repayment time, peer group formation, interest rate and loan size challenges to access credit. According to the kebele’s FMSC Revolving fund benefit farmers to access irrigation credit by providing credit in commodity, and the interest rate and the repayment time and repayment period of this fund is three year and it also benefit women. Therefore, policy aimed to increase irrigation development in the area could be successful if these factors and problems are taken into consideration to increase farmers’ access credit from the formal financial sources.