This article first examines theoretically some of the Marxist and neo-Marxist arguments on the role of rural credit market and usury capital in perpetuating stagnation in backward agriculture. The data collected through surveys in two areas of Bangladesh also enable it to examine empirically some of the more recent models. It is argued in the article that the models provide only a partial analysis of the observed credit relations in Bangladesh agriculture. For a coherent and complete analysis, the totality of credit and land relations must be considered and the significant observation that a large part of loans in rural Bangladesh is provided free of interest must be put in proper perspective. The article provides an alternative analysis of rural credit relations and draws some implications for capital formation and capitalist growth in Bangladesh agriculture.