nep-mfd New Economics Papers
on Microfinance
Issue of 2025–11–17
one paper chosen by
Marco Novarese, Università degli Studi del Piemonte Orientale


  1. Mitigating asymmetric information in credit markets: Evidence from Microcredit By Miguel Sarmiento-Paipilla; Andrés Esteban Casas-Fajardo; John Sebastian Tobar-Cruz; Eduardo Yanquen

  1. By: Miguel Sarmiento-Paipilla; Andrés Esteban Casas-Fajardo; John Sebastian Tobar-Cruz; Eduardo Yanquen
    Abstract: This paper analyzes the impact of microcredit on the transition to credit lines in the rural sector. Using administrative data, we find that borrowers entering the subsidized credit market through microcredit programs transition to credit lines with higher loan volumes, lower interest rates, and longer maturities relative to borrowers who enter this market directly. Our results suggest that by reducing asymmetries of information —through both credit history and asset accumulation— microcredit expansion via public policy promotes the transition of new borrowers to credit markets dominated by large borrowers. *****RESUMEN: Este documento analiza el impacto del microcrédito en la transición hacia líneas de crédito en el sector rural. Utilizando datos administrativos, encontramos que los prestatarios que ingresan al mercado de crédito subsidiado a través de programas de microcrédito transitan hacia líneas de crédito con mayores montos, menores tasas de interés y plazos más largos en comparación con aquellos que acceden directamente a este mercado. Nuestros resultados sugieren que, al reducir las asimetrías de información —tanto mediante la construcción de historial crediticio como a través de la acumulación de activos—, la expansión del microcrédito impulsada por políticas públicas facilita la transición de nuevos prestatarios hacia mercados de crédito dominados por grandes actores.
    Keywords: Asymmetric information, microfinance, financial inclusion, rural credit, Información asimétrica, microfinanzas, inclusión financiera, crédito rural
    JEL: G21 O12 O54
    Date: 2025–11
    URL: https://d.repec.org/n?u=RePEc:bdr:borrec:1328

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