It is normal to give your house or jewellery as collateral when taking out a mortgage. Farmers can give their tractors or any other machinery as security while applying for loans. However, in Italy, using cheese as collateral for loans has proved to be a profitable business venture.
In Reggio Emilia, an organization called Credito Emiliano, popularly referred to as Credem, takes cheese wheels, specifically Parmigiano-Reggiano, as collateral. This helps the farmers get money instantly without having to sell their valuable cheese.
