Uptake of insurance-embedded credit in presence of credit rationing

What is it about?

We estimate the causal effect of bundling weather index insurance to credit on uptake of agricultural credits among rural smallholders and assess their credit rationing, its determinants and effects on credit uptake. Uptake of bundled credit was significantly higher than that of traditional credit. Risk rationing influenced credit uptake negatively whereas premium subsidies did not have any significant association with credit uptake.

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