Impact of Large Loans on Microenterprises in Chile

Last registered on April 02, 2024


Trial Information

General Information

Impact of Large Loans on Microenterprises in Chile
Initial registration date
March 27, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
April 02, 2024, 11:04 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.


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Primary Investigator

Harvard Business School

Other Primary Investigator(s)

PI Affiliation
Harvard Business School

Additional Trial Information

On going
Start date
End date
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
We evaluate the impact of a new individual liability credit product on microfinance borrowers in Chile. This new credit product is significantly larger than the standard loan offered to borrowers, making it particularly suitable for fixed asset investment. We focus on measuring the impacts on business outcomes, such as profits, assets and household income, as well as any spillover effects to the local economy. In addition, we evaluate the extent to which loan officers and other peers’ opinions on the suitability of borrowers for the new product predict whether they are indeed good candidates for the loan.
External Link(s)

Registration Citation

Rigol, Natalia and Ben Roth. 2024. "Impact of Large Loans on Microenterprises in Chile." AEA RCT Registry. April 02.
Experimental Details


Intervention Start Date
Intervention End Date

Primary Outcomes

Primary Outcomes (end points)
Profits, Assets and Household Income
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Consumer Surplus
Secondary Outcomes (explanation)
Consumer surplus will be measured by eliciting willingness to pay of a subset of each business' customers.

Experimental Design

Experimental Design
All borrowers in the sample have been fully approved by the microfinance institution to receive loans. As part of this approval process, their applications are reviewed by the risk division and the borrowers must attend an educational session on how to create an investment plan.

Once they have completed these steps, they are randomly assigned to the treatment group (and receive the larger individual liability loan) or the control group (with the option of a smaller individual liability loan). Both groups also receive the standard join-liability loans.

Impact of the intervention is evaluated using three rounds of data collection: a baseline, an endline, and surveys with the borrowers’ customers. During phone-based interviews, borrowers self-report business outcomes, including profits and what they used the loan for. We also use administrative data from the bank on repayment and other borrowing behaviors to evaluate borrower performance.

We also use a phone-based survey to collect the opinions of loan officers and other peers on the suitability of each candidate prior to the baseline.
Experimental Design Details
Not available
Randomization Method
Randomization of a list of eligible borrowers is done using Stata. Randomization occurs on a rolling basis as applications come in, and is typically completed in batches of 30-50 entrepreneurs.
Randomization Unit
Randomization is at an individual level stratified by Loan Officer.
Was the treatment clustered?

Experiment Characteristics

Sample size: planned number of clusters
No Clusters
Sample size: planned number of observations
500 observations
Sample size (or number of clusters) by treatment arms
250 borrowers in the control group, 250 borrowers in the treatment group
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)

Institutional Review Boards (IRBs)

IRB Name
Harvard Human Research Protection Program
IRB Approval Date
IRB Approval Number