PIDS Book 2019-01
Harnessing the Fourth Industrial Revolution: Creating Our Future Today (Proceedings of the Fourth Annual Public Policy Conference 2018)
RPS 2019-03
Forest Protection in the Philippines: Policy Evolution and Sector Outcomes
DP 2019-07
The Evolution of APEC and its Role in the Philippine Trade and Investment
PN 2019-07
Issues on Communal Irrigation Systems in the Philippines
Publication Detail
WP 1987-03: Can the Informal Lenders be Co-opted Into Government Credit Programs?

It is generally known that non-financial institutions comprise an important source of credit for rural borrowers. Not only do informal loans involve lower borrower transaction costs but also are more flexible with respect to both timing and use. This paper is a preliminary sketch of current government funded agricultural credit programs that utilize non-financial institutions as conduits of lending. It focuses on the National agricultural Productivity Program in the Philippines, whose programs are aimed at providing credit to the agricultural sector by using the informal lenders as conduits. Findings revealed the existence of specialization among rural lenders according to their competitive advantage. It has also been shown that potential benefits can be gained from linking credit transactions to other assets.

Philippine Institute for Development Studies
Authors Keywords
Esguerra, Emmanuel F.; credit program; credit market;
Download PDF Number of Downloads
Published in 1987 and available in the PIDS Library or can be downloaded as full text Downloaded 974 times since November 25, 2011