Agricultural input loan was provided by the government. This system, in fact, had creates many burdens and problems for the government. Among these, the government has spent its time in distributing agricultural inputs than modernizing the farming system of the region. The farmers weren’t re-payed loans. The agricultural extensions has also not given due emphasis for agricultural productivity. To resolve these problems, Tsedey Bank had takeover the responsibility to provide financial services for agricultural inputs loan. Since 2006 the institution has agreed with National bank of Ethiopia, Bureau of Agriculture and Cooperatives Extension Agency to serve as a major agricultural inputs provider and inputs sales agents of the region.