Instability in interest rate policy created interest rate volatility. The study investigated the relationship between the value of guaranteed loans and interest rate policy on the growth of Agricultural Credit Guarantee Scheme activities in Nigeria. Time series data collected from the staiistical bulletin of Central Bank of Nigeria were used for the analysis. Multiple regression models were used in estimating the effects of interest rate policy on the value of loans/advances accessed by agro-entrepreneurs under ACGS over the years. The results showed that value of loans/advances accessed by the loan beneficiaries under ACGS was inversely related to interest rate policy and directly influenced by outreach, loan repayment and liquidity over the years. It is recommended that incentive be created in form of increased rate for interest drawback scheme. This would assist to rebate high lending rates by the banking system