The study aims to explore the effects of micro-credit provided by microfinance institutes in changing the agricultural occupation of local famers. The hypothesis proposed that an improvement in the standard of living for micro-credit users’ is dependent on their occupation. A hundred sample households receiving micro-credit loans from microfinance institutes were selected for the interview from Sangkae, Thmar Koul and Sampov Loun district of Battambang province. Cluster Sampling Method was used to determine the location of the study, while Simple Random Sampling Method was used to select households. The results indicated that agriculture is the main occupation of most households. Most households therefore used micro-credit for buying agricultural equipment. It was found that microfinance contributes to increased income, household consumption and savings for households. Moreover, there was an increase in employment rate and economic activities in the districts. However, households which had not used micro-credit in the proper way have sold their property and land to repay the loans. Despite some negative effects, this study found that microfinance has generally improved agriculture works and the welfare of households.