# Table 2: Impacts on Credit Constraints

|||**Pa**|**nel A: Extensive margin (a**|**ny borrowing for business pu**|**rposes)**||
|---|---|---|---|---|---|---|
||(1)<br>Received an<br>uncollateralized loan<br>(Yes 1; No 0)|(2)<br>Borrowed<br>in the past 3 years<br>(Yes 1; No 0)|(3)<br>Borrowed from formal source<br>in the past 3 years<br>(Yes 1; No 0)|(4)<br>Borrowed from informal source<br>in the past 3 years<br>(Yes 1; No 0)|(5)<br>Borrowed from bank<br>in the past 3 years<br>(Yes 1; No 0)|(6)<br>Borrowed from MFI<br>in the past 3 years<br>(Yes 1; No 0)|
|Treatment (0/1)|0.931***|0.292***|0.476***|-0.176**|0.000921|-0.101|
||(0.035)|(0.076)|(0.077)|(0.084)|(0.059)|(0.077)|
|Psychometric score above median (0/1)|0.0344|0.104|0.170**|-0.0260|0.0755|0.131*|
||(0.030)|(0.076)|(0.076)|(0.079)|(0.057)|(0.074)|
|**ANCOVA**|✗|✓|✓|✓|✓|✓|
|Observations|131|124|124|124|124|124|
|Control mean<br>|0.0290|0.606|0.424|0.318|0.106|0.258|
|_R_<sup>2</sup>|0.88|0.14|0.28|0.050|0.020|0.039|
|Randomization inference p-value|0|0.0030|0|0.031|0.98|0.20|
|Sharpened q-value|0.01|0.0100|0.01|0.071|0.46|0.20|
|||**Panel **|**B: Intensive margin (amou**|**nt borrowed for business pur**|**poses) - IHS**||
||(1)|(2)|(3)|(4)|(5)|(6)|
||Total amount borrowed|Total amount borrowed|Formal amount borrowed|Formal amount borrowed|Informal amount borrowed|Informal amount borrowed|
||(Unconditional)|(Conditional)|(Unconditional)|(Conditional)|(Unconditional)|(Conditional)|
|Treatment (0/1)|4.564***|0.631**|6.547***|0.204|-2.121**|0.587|
||(1.03)|(0.30)|(1.00)|(0.32)|(0.96)|(0.55)|
|Psychometric score above median (0/1)|1.043|-0.0777|2.462**|-0.106|-0.407|-0.0877|
||(1.00)|(0.24)|(0.98)|(0.22)|(0.88)|(0.55)|
|**ANCOVA**|✓|✓|✓|✓|✓|✓|
|Observations|124|95|124|83|124|31|
|Control mean|7.043|12.51|5.022|12.86|3.399|11.76|
|_R_<sup>2</sup>|0.17|0.086|0.33|0.056|0.053|0.13|
|Randomization inference p-value|0.01|0.066|0|0.59|0.018|0.20|
|Sharpened q-value|0.0050|0.11|0.01|0.43|0.049|0.20|
|||**Panel C**|**: Intensive margin (amoun**|**t borrowed for business purp**|**oses) - Levels**||
||(1)|(2)|(3)|(4)|(5)|(6)|
||Total amount borrowed|Total amount borrowed|Formal amount borrowed|Formal amount borrowed|Informal amount borrowed|Informal amount borrowed|
||(Unconditional)|(Conditional)|(Unconditional)|(Conditional)|(Unconditional)|(Conditional)|
|Treatment (0/1)|272.3|-1127.3|850.5|-2534.6|-12523.8*|434.1|
||(1089.6)|(1527.9)|(866.1)|(1984.8)|(7269.5)|(580.0)|
|Psychometric score above median (0/1)|1045.0|973.1|1471.9**|318.2|-2483.4|206.4|
||(932.2)|(1172.9)|(713.3)|(1268.5)|(6591.6)|(480.6)|
|**ANCOVA**|✓|✓|✓|✓|✓|✓|
|Observations|124|95|124|83|124|31|
|Control mean|2529.4|4283.5|1789.7|5380|21045.5|1108.1|
|_R_<sup>2</sup>|0.062|0.055|0.085|0.056|0.13|0.24|
|Randomization inference p-value|0.76|0.44|0.28|0.14|0.063|0.22|
|Sharpened q-value|0.43|0.39|0.26|0.18|0.11|0.21|

Notes: Panel A outcomes are as follows: (1) Uncollateralized loan indicates if the loan was received or not according to the financial institution. (2) ”Borrowing any money” takes the value of 1 if respondent borrowed formally or informally, and 0 otherwise. (3) Formal borrowing indicates if respondent borrowed any money for their business from Banks, Micro-finance Institutions (MFI), or Credit Unions. (4) Informal borrowing indicates if respondent borrowed any money for their business from their spouse, friends and relatives, and informal savings groups. (5) Borrowing from bank indicates if respondent borrowed any money for their business from a bank. (6) Borrowing from MFI indicates if respondent borrowed any money for their business from an MFI (other than Wasasa). Panel B and C outcomes are as follows: Outcomes 1 and 2 are total borrowing, 3 and 4 are total formal borrowing amount which includes self-reported amounts borrowed for the business from formal sources such as Banks, Micro-Finance Institutions (MFI), and Credit Unions, and 5 and 6 are total informal borrowing amount which includes self-reported amounts borrowed for the business from the spouse, friends and relatives, and informal savings. Panel B presents inverse hyperbolic transformed outcomes and panel C presents 99th-percentile winsorized raw outcomes. Conditional amounts represent self-reported estimates for those who borrowed, whereas unconditional amounts include those who did not borrow with a value of 0. All outcomes have a three year recall period, so Panel A represents any borrowing in the past 3 years and Panel B and C represent total borrowing from all loans in the past 3 years. Psychometric scores in the impact evaluation sample ranged from 370 to 452, and the median score used a cut-off is 383 (note that 370 was the qualifying score to receive an uncollateralized loan). Includes a control for number of children in the households that was imbalanced between treatment and control at baseline. Observations represent number of individuals. Robust standard errors are in parentheses. * _p <_ 0 _._ 05, ** _p <_ 0 _._ 01, *** _p <_ 0 _._ 001