GENDER BIAS AND THE AVAILABILITY OF BUSINESS LOANS

Two experiments were carried out to test the belief that women are unf airly discriminated against when seeking a loan to establish a busines s venture. Scenarios of an application for loan finance to purchase a commercial enterprise were mailed to loan officers of major trading ba nk branches, the scenarios being identical in all respects except for the sex and education level of applicants. Loan officers were asked wh ether or not they would approve loan finance for the proposed business purchase and to indicate factors that contributed to their decision. Significant differences in response to female and male applicants were observed, favoring the male applicant.