The role of formal credit institutions has been crucial in fostering agricultural growth in India. This research paper examines the impact of credit disbursed by Scheduled Commercial Banks (SCBs) on the agricultural sector’s development. Using state-wise temporal and spatial data spanning from 2004-05 to 2021-22, the study analyzes the distribution of agricultural credit, its correlation with agricultural GDP, and the elasticity of credit in driving growth. Despite an overall increase in agricultural credit, significant regional disparities remain, affecting the efficiency of credit policies and agricultural advancement.  The study underscores the need for targeted policy interventions to address regional imbalances and promote equitable access to financial resources. It recommends enhancing financial support mechanisms, improving credit accessibility, and customizing policies to suit the specific agricultural requirements of each state to achieve sustained agricultural development in India.