Abstract: The study was undertaken to examine and compare the socio-economic characteristics of agricultural loan beneficiaries and non-beneficiaries in Ekiti State, Nigeria. Four villages were selected randomly from two randomly selected Local Government Areas in the state for the study. Structured questionnaires were used to collect information from 150 rural farmers. Analytical tools employed include descriptive statistics such as: frequency counts, tables and percentage and multivariate regression analysis. The estimated regression equations for the 2 categories of farmers (beneficiaries and non-beneficiaries of agricultural loan) were tested for equality of the corresponding coefficients through the Chow Test. The descriptive statistics reveals that majority (63%) of the respondents had access to agricultural loan. But 93% of the loan beneficiaries claimed that non-institutionalized organizations and individuals remain regular sources of loan to them. Seventy percent of the respondents were unaware of the Agricultural Credit Guarantee Scheme (ACGS). Seventy seven percent of the beneficiaries maintained that most of the loan collected were used to purchase planting materials and paid hired labour. The modal age group for the beneficiaries was 40-49 years while majority (77%) of them had not less than primary education. In addition many (70%) of them had been farming for 11-15 years. For the non-beneficiaries the modal age was 50-59 years. Most (80%) had no formal education and 70% had been farming for over 20 years. The regression analysis shows that the 8 postulated independent variables [Age (X₁), Household Size (X₂), Educational Status (X₃), Farm Size (X₄), Hired Labour (X₅), Family Labour (X₆), Farming Experience (X₇) and Distance of Residence to Farm (X₈)] explain 55-63% of the variation in logarithm of the gross output value. The coefficient of multiple determination of 0.632 for the beneficiaries connotes that about 63% of the observed variation in gross output value were occasioned by change in the eight-selected variable. Based on the findings of the study, certain recommendations were made that will help to unlock agricultural and rural potentials. There is need for urgent and concerted action to enlighten rural farmers about the importance of Agricultural Credit Guarantee Scheme.