Lenders are more willing to lend if the borrower can put up collateral for the loan. Remember that collateral is something of value that by agreement becomes the property of the lender if the borrower defaults. In the United States, many small business owners borrow money for their business by using their houses or business assets as collateral. But in many developing countries, people don’t have secure property rights, or title, to the land or house in which they live. In Bangalore, India, for example, it’s nearly impossible to say who owns a piece of land and about 85% of the people in that city live on a piece of land for which they have no title. How difficult do you think it would be for a small business person in Bangalore to get a modest-sized loan?