This paper extends empirical evidence on the determinants; of the incidence of business and personal collateral for SMEs in less-developed countries. The findings endorse the importance of producing and sharing private information between lenders to reduce informational asymmetries. The results suggest that market concentration increases lazy behavior of banks by asking for collateral not to mitigate observable risk but to reduce screening efforts. The results indicate that reforms pertaining to the information-sharing instruments by public credit registries have practical effects on mitigating credit constraints and reducing collateral requirements. Using a continuation ratio model, this study uncovers several differences in the determinants of the collateralization decision and the type of collateral provided.