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In the present study, a borrowing function has been estimated in order to identify the relevant factors affecting the borrowings of the farm families living under different topographical conditions. The major determinants of the agricultural borrowing are found to be capital expenditure, family expenditure and value of assets. The study, as discussed later, revealed that the total variation in the magnitude of borrowed amount due to unit change in capital expenditure and family expenditure is remarkably different between Khopasi (Hills) and Anandaban (Terai).