This study tried to identify the effect of demographic, socio-economic and institutional factors on access to formal credit in Bahir Dar Zuria Woreda. To achieve this objective, the study utilized cross-sectional survey research design. Primary data was collected using selfdesigned questionnaire from 360 Bahir Dar Zuria woreda household farmers who were selected by multi-stage sampling. Binary logistic regression model was used to analyze the mixed data using SPSS version 23. In addition, interview was conducted with selected ACSI officers to support the data collected by questionnaire. The result of the study revealed that 48 % of the respondents in the study area have access to formal credit while 53 % of the respondents did not have the access to formal credit. It also found that variables like collateral requirement, saving culture of households, source of information, number of livestock unit, experience in credit use and deposit interest rate were important in influencing access to formal credit use as evidenced by the model output. Hence, the researcher suggests that CBE and micro finance institutions should encourage farmers saving culture by strengthening deposit interest rate. MFIs should promote themselves and the type of services they will provide over different local media and mass media such as radio, television and newspapers so, the rural poor will have an improved farmer’s accessibility of evidence. In case of collateral, the researcher recommended that the household heads or the respondents form a group to collect loan or credit from banks and microfinances. In case of source of information it is advisable that Small landholder farmers need to find new information about not only financial institutions but also everything related to their country. This study tried to identify the effect of demographic, socio-economic and institutional factors on access to formal credit in Bahir Dar Zuria Woreda. To achieve this objective, the study utilized cross-sectional survey research design. Primary data was collected using selfdesigned questionnaire from 360 Bahir Dar Zuria woreda household farmers who were selected by multi-stage sampling. Binary logistic regression model was used to analyze the mixed data using SPSS version 23. In addition, interview was conducted with selected ACSI officers to support the data collected by questionnaire. The result of the study revealed that 48 % of the respondents in the study area have access to formal credit while 53 % of the respondents did not have the access to formal credit. It also found that variables like collateral requirement, saving culture of households, source of information, number of livestock unit, experience in credit use and deposit interest rate were important in influencing access to formal credit use as evidenced by the model output. Hence, the researcher suggests that CBE and micro finance institutions should encourage farmers saving culture by strengthening deposit interest rate. MFIs should promote themselves and the type of services they will provide over different local media and mass media such as radio, television and newspapers so, the rural poor will have an improved farmer’s accessibility of evidence. In case of collateral, the researcher recommended that the household heads or the respondents form a group to collect loan or credit from banks and microfinances. In case of source of information it is advisable that Small landholder farmers need to find new information about not only financial institutions but also everything related to their country.