Introduction Increasing inequality and concentration of incomes in the upper-income classes is the main reason for the decline in living standards of people in the lower-income classes. Thus, increasing inequality in income distribution will be directly related to the spread of poverty in poorer communities and low-income groups. Therefore, addressing the issue of income distribution in rural areas of developing countries is one of the most important research priorities. Changes in income distribution in rural areas of Iran have had an almost constant trend in the long run. However, in some years, including over the past decade and in recent years, rural income inequalities have been on the rise. Therefore, planning to reduce inequality in rural areas of Iran and analyze economic policies related to income distribution from various dimensions, especially from the perspective of deprivation is very important. Credit policy has always had a special place in development programs so that the provision of banking facilities is one of the effective and determining factors in the desirable growth and development of economic sectors. Therefore, considering the importance of the issue of income inequalities in rural areas of Iran, this study evaluates the impact of credit policy on income inequalities in rural areas of Iran. Materials and Methods In this study, the income inequality index (Gini coefficient of rural areas) is considered as a function of rural credits and other economic factors affecting this index including GDP of Iran's agricultural sector, the capital stock of Iran's agricultural sector, income to expenditure ratio of rural areas of Iran and subsidies for agricultural inputs. After evaluating several econometric models, a logarithmic model was finally specified and estimated. For this purpose, the approach of the autoregressive distributed lag model (ARDL) and time series data from 1986-2018 was used. Results and discussion According to the results, the adoption of credit policy has had a significant effect on reducing income inequalities in rural areas in the short and long run. The results of this study also showed that increasing the real capital stock of the agricultural sector in Iran reduces income inequalities in rural areas. In addition, increasing the share of incomes from annual rural expenditures was found to be effective in reducing income inequalities. Therefore, it seems that increasing the real capital stock of the agricultural sector in various ways can directly increase the assets and incomes of the villagers by strengthening the financial capacity and income of the villagers and consequently improve the distribution of rural incomes. In addition, it can indirectly and by strengthening the credit support of the villagers, lead to greater success of credit policy in this area. According to the results of this study, the real growth of the agricultural sector and subsidies for agricultural items will increase income inequalities in rural areas of Iran. Suggestion In order to reduce income inequality in rural areas of the country, pursuing and continuing the implementation of credit policy due to its sustainable and long-run effects on reducing inequality in rural income distribution in the country is the first policy recommendation in this study. In addition, facilitating capital increase processes in the agricultural sector with a focus on micro-beneficiaries is another policy recommendation in this study that can facilitate the implementation of credit policy by supporting the receipt of credit for micro-owners.