This paper analyses the determinants of collateral in loans granted to entrepreneurs and consumers. We use cross … score, are more likely to pledge collateral. At the same time, wealthier borrowers are more likely to pledge collateral in … order to benefit from a reduction in their interest costs. We also present evidence on other determinants of collateral such …

This paper examines the role of collateral in the rural credit market of an emerging country. Due to opaque information … and weak enforcement, the need for collateral is expected to be high. However, rural households usually lack adequate … assets to pledge as collateral. How is this puzzle solved? Using data from Thailand, we find that indeed most loans are …