This paper focuses on identifying the factors that influence credit demand and also those
that result in the poor being credit rationed by lenders. An understanding of both these
sets of determinants could assist policy formulation to enhance the welfare of the poor
through improved credit access. In this respect, we were fortunate in having a dataset
that contains questions not only on actual credit given but also on loans applied for.
This allows us to investigate both credit demand and credit supply, and to model these
using observed household and individual characteristics.