IGIDR WORKING PAPER: Land as collateral in India

NO : WP-2019-006

AUTHOR : Sudha Narayanan, Judhajit Chakraborty

TITLE : Land as collateral in India


Land is often regarded as a crucial factor enabling credit access because it serves as an ideal
collateral, for both borrowers and lenders. Yet in reality, in developing countries like India land is not
used as collateral for a variety of reasons. This paper maps the use of land as collateral for borrowings
by Indian households using a nationally representative survey of households, the All India Debt and
Investment Survey (AIDIS) of 2012-13. The goal of the paper is to document the extent and patterns of
use of land as collateral. We supplement this with insights from a field survey in select talukas of
Maharashtra that examines borrower perceptions of use of land as collateral.

Keywords:Land, collateral, credit, India, household finance, land records

JEL Code :  Q15

Weblink :http://www.igidr.ac.in/pdf/publication/WP-2019-006.pdf