Does social capital positively influence loan performance even during a crisis?

• 成果类型: Article
• 署名作者: Agarwal, Sumit; Tantri, Prasanna; Vishen, Nitin
• 署名单位: National University of Singapore; Indian School of Business (ISB); Indian Institute of Management (IIM System); Indian Institute of Management Bangalore
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2024.103384
• 发表日期: 2025
• 关键词: Household finance; Debt-repayment behavior; Joint-liability; Covid-19 crisis

摘要

Theoretically, it is unclear whether group loans outperform individual loans in terms of delinquency, especially during a crisis. It is difficult to test the hypothesis due to differences in the types of borrowers of the group and individual loans and likely differences in their behavior between crises and normal times. We overcome the challenge by comparing simultaneous group and individual loans of the same individual before and during the Covid-19 crisis in India. We find that the delinquency rate of group loans is significantly lower. Further tests suggestively indicate that the outperformance is due to the peer pressurechannel.