Social Factors Associated With Financial Behavior of Women Borrowing Microfinance Loans: Evidence From a Developing Economy

Abstract

Women borrowers in the microfinance sector can have an important social and economic impact on any economy. The financial behavior of women is one of the important issues besetting a country, particularly a developing country. However, social factors associated with women’s financial behavior have not been investigated adequately. This study aimed at examining social factors associated with women’s financial behavior within the microfinance sector of the Northern and Eastern provinces of Sri Lanka. A sample of 298 women living in civil war-affected provinces who have secured microfinance loans and were currently suffering from the consequences of such borrowings was used for the study. The results obtained from the structured questionnaire showed that financial socialization, perceived social support, and personal social capital are associated with the financial behavior of these women. The findings of this study have implications for policymakers, microfinance institutions, and scholars in their attempts to expand support for women borrowers.