Evidence suggests that the unorganised manufacturing units are extremely credit starved. The unavailability of credit for such firms could be a direct result of lack of documentation of property rights which in turn renders the assets of the firm non-collateralizable. The absence of this essential representation of assets, which includes machinery, building, even the land on which the firm is set up, leads to problems of moral hazard, giving rise to asymmetry in information thereby restricting the usability of physical assets in generating capital. We attempt to study the nature and extent of impact that absence of property rights has on the credit availability of informal firms in India and found improper documentation of property rights results in significant credit crunch for the unorganised production units. We also observed that under such constraint the small informal firms tend to work as outsourced units for other firms thereby leading to intra-country production reorganization.

有证据表明，无组织的制造部门极度缺乏信贷。这些公司无法获得信贷可能是缺乏产权文件的直接结果，这反过来又使该公司的资产无法抵押。资产缺乏包括机器，建筑物，甚至公司所在的土地在内的基本表示形式，会导致道德风险问题，导致信息不对称，从而限制了有形资产在产生资本中的可用性。我们试图研究缺乏产权对印度非正规企业的信贷可用性的影响的性质和程度，并发现不正确的产权记录会导致无组织生产单位的严重信贷紧缩。