**Table 6. Using Updated EFL Scores to Test Hypothesis 1: Risk Reduction**

||Banked+|Unbanked|Ban|ked|Unba|nked|
|---|---|---|---|---|---|---|
||EFL||EFL||EFL||
||(1)<br> <br>Accepted|(2)<br>Diff §|(3)<br> <br>Accepted|(4)<br>Diff §|(5)<br> <br>Accepted|(6)<br>Diff §|
|Classification worse than "Normal" at SBS (12 months after app.)|0.229***|0.117***|0.234***|0.121***|0.178***|0.101|
||(0.019)|(0.032)|(0.020)|(0.034)|(0.058)|(0.090)|
|More than 90 days in arrears at SBS (12 months after app.)|0.104***|0.063**|0.107***|0.068**|0.075*|0.047|
||(0.014)|(0.026)|(0.015)|(0.028)|(0.042)|(0.067)|
|More than 90 days in arrears at SBS (during next 12 months following app.)|0.143***|0.099***|0.146***|0.107***|0.120**|0.054|
||(0.015)|(0.027)|(0.016)|(0.030)|(0.046)|(0.073)|
|Number of days in arrears (6 months after app.)|12.256***|10.863***|12.466***|10.479***|10.222**|14.225|
||(1.514)|(2.999)|(1.592)|(3.208)|(4.951)|(8.552)|
|Number of days in arrears (12 months after app.)|23.420***|12.519***|23.995***|13.204**|18.234**|9.948|
||(2.732)|(4.799)|(2.898)|(5.204)|(8.161)|(12.498)|
|Increase in debt at SBS (1 month after test wrt 1 month before app.)|0.348***|0.035|0.412***|0.014|0.147***|0.115**|
||(0.019)|(0.031)|(0.023)|(0.036)|(0.029)|(0.052)|
|Increase in debt at SBS (6 month after test wrt 1 month before app.)|0.486***|0.024|0.556***|0.012|0.267***|0.079|
||(0.020)|(0.032)|(0.023)|(0.036)|(0.036)|(0.059)|
|Classification at SBS (12 months after app.)|0.839***|0.012|1.000***|‐0.003|0.333***|0.097|
||(0.015)|(0.023)|(0.000)|(0.003)|(0.039)|(0.062)|
|Loan from implementing institution|0.000|0.000|0.000|0.000|0.000|0.000|
||(.)|(.)|(.)|(.)|(.)|(.)|
|Number of observations|10|40|78|3|2|57|

_Note:_ The sample includes all entrepreneurs accepted under the traditional method who did not take a loan from the implementing institution. § Difference between entrepreneurs rejected and accepted based on their updated EFL score (from the EFL Global model v1). Ordinary least squares estimates. Robust standard errors in parentheses: * p<0.1, ** p<0.05, ***p<0.01.

**Table 7. Using Updated EFL Scores to Test Hypothesis 2: Credit to New Borrowers**

||Banked+|Unbanked|Ban|ked|Unba|nked|
|---|---|---|---|---|---|---|
||TM||TM||TM||
||(1)<br> <br>Accepted|(2)<br>Diff §|(3)<br> <br>Accepted|(4)<br>Diff §|(5)<br> <br>Accepted|(6)<br>Diff §|
|Classification worse than "Normal" at SBS (12 months after app.)|0.279***|0.381***|0.283***|0.386***|0.245***|0.155|
||(0.015)|(0.041)|(0.016)|(0.042)|(0.044)|(0.226)|
|More than 90 days in arrears at SBS (12 months after app.)|0.130***|0.245***|0.131***|0.261***|0.121***|‐0.121***|
||(0.012)|(0.047)|(0.012)|(0.049)|(0.035)|(0.035)|
|More than 90 days in arrears at SBS (during next 12 months following app.)|0.182***|0.273***|0.185***|0.292***|0.160***|‐0.160***|
||(0.013)|(0.042)|(0.013)|(0.043)|(0.036)|(0.036)|
|Number of days in arrears (6 months after app.)|16.233***|49.248***|16.227***|50.021***|16.283***|33.717|
||(1.317)|(9.735)|(1.400)|(10.098)|(3.897)|(31.687)|
|Number of days in arrears (12 months after app.)|28.559***|72.406***|28.840***|75.691***|26.485***|‐4.685|
||(2.196)|(14.080)|(2.347)|(14.623)|(6.276)|(13.758)|
|Increase in debt at SBS (1 month after test wrt 1 month before app.)|0.369***|0.011|0.423***|‐0.053|0.202***|0.353**|
||(0.014)|(0.041)|(0.017)|(0.043)|(0.024)|(0.168)|
|Increase in debt at SBS (6 month after test wrt 1 month before app.)|0.510***|‐0.092**|0.573***|‐0.163***|0.316***|0.239|
||(0.015)|(0.042)|(0.017)|(0.044)|(0.028)|(0.169)|
|Classification at SBS (12 months after app.)|0.850***|0.138***|0.999***|0.001|0.390***|0.388***|
||(0.011)|(0.014)|(0.001)|(0.001)|(0.030)|(0.142)|
|Loan from implementing institution|0.000|0.000|0.000|0.000|0.000|0.000|
||(.)|(.)|(.)|(.)|(.)|(.)|
|Number of observations|12|70|98|9|3|66|

_Note:_ § Difference between entrepreneurs that would have been rejected under the traditional model and accepted based on their updated EFL score and entrepreneurs accepted under the traditional model (only for entrepreneurs who did not take a loan from the implementing institution). Ordinary least squares estimates. Robust standard errors in parentheses: * p<0.1, ** p<0.05, ***p<0.01.

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