10.17889/E110710V1
Visaria, Sujata
Replication data for: Legal Reform and Loan Repayment: The Microeconomic Impact of Debt Recovery Tribunals in India
ICPSR Inter-university Consortium for Political and Social Research
2008
10.1257/app.1.3.59
10.1257/app.1.3.59
1
In 1993, the Indian government introduced debt recovery tribunals
to speed up the resolution of debt recovery claims larger than
a threshold. This paper exploits the staggered introduction of tribunals
across states and the link between overdues and claim size
to implement a differences-in-differences strategy on project loan
data. It finds that the tribunals reduced delinquency for the average
loan by 28 percent. They also lowered the interest rates charged on
larger loans, holding constant borrower quality. This suggests that
the speedier processing of debt recovery suits can lower the cost of
credit. (JEL G21, K41, O16, O17)