In a dynamic urban environment with an accessible banking sector, land titles are associated with improved access to credit. In Mongolia’s case, access to the government’s mortgage subsidy program, combined with the ability to efficiently register land parcels, catalyzed mortgages. Special Hashaa Plot Survey data shows that those households with title were driving the increase in mortgages. Context is key as in more rural contexts, such as Benin, credit effects were not seen. It is key to note that a title is often a requirement for a loan but not the only constraint. Often there are other factors around the bankability of an applicant. When a title is the key constraint and there is demand for loans without other constraints to loan like lack of income or poor liquidity, then an effective land administration can help facilitate loans.
Lesson Learned