Group Lending, Personal Wellbeing and Business Success among Low Income Women in Indonesia

This thesis investigates the effects of microcredit provision among low-income women in West Java, Indonesia. Microcredit provided through a group lending model can play a vital role in giving access to finance, and supporting women to start and grow small businesses. The thesis finds that women who have longer involvement with a microcredit program experience several improvements in business outcomes and wellbeing, including psychological capital, emotional wellbeing and aspects of social capital. The borrower’s relationship with loan officers also helps improve skills in goal-setting and handling difficulties, demonstrating the many ways in which women’s capabilities can be improved through such programs.