Implications of land title for farm credit in Thailand

The land title issue in rural Thailand is a complex one and it has many implications and consequences, particularly for primary economic activities. The various forms of land title vary from permit to use to transferable rights. Transferable land titles can be used as collateral to obtain loans from all formal sources, thus widening choice. Without collateral, loans in small quantity are available from special institutions. The average size of loan for farmers with transferable land rights is about 60% higher than for those without. There is, however, no significant difference between non-transferable land title holders and those who have no titles in any form. In the absence of collateral security (titled land in rural areas) it is impossible to obtain relatively large amount of farm credits.