IDEAS home Printed from https://ideas.repec.org/a/rnd/arimbr/v16y2024i1p274-278.html

Microcredit Clients’ Financial Literacy Towards Financial Inclusion and Sustainability

Author

Listed:
  • Azlina Rahim
  • Vani Tanggamani
  • Hamidah Bani
  • Nor Ashikin Alias

Abstract

According to the recent Malaysian MADANI Budget 2023 which has been declared by Prime Minister, it is notable that 7 billion was allocated to help micro-entrepreneurs, women and youth. Therefore, it is crucial to ensure that the clients have appropriate financial literacy to ensure that the loans can be repaid accordingly. For microcredit clients to have this ability, they should have sound financial literacy to be able to manage their money, make wise decisions, and maintain vigorous spending. Thus, to promote sustainable financial sustainability, the objective of this study is to assess the level of microcredit financial literacy of microcredit clients in enhancing their knowledge, skills and transparency that can lead to financial sustainability. Further, it will also test empirically whether microcredit financial literacy can integrate the cognitive comprehension of financial knowledge, skills and responsibility with respect to financial sustainability. This study will use an exploratory sequential mixed-method research design that combines quantitative (questionnaires) and qualitative (interviews) data. The data-gathering method then continues with concentrated group interviews on selected microcredit clients. This covers clients from TEKUN Nasional Melaka to deliberate on related problems. Data analysis in qualitative research focuses on the systematic search and arrangement of interview transcripts. Interviews are necessary to gain a thorough understanding of issues with financial knowledge and skills among clients. It is expected that the study will benefit the policy maker, microcredit clients and the government in enhancing financial inclusion and sustainability. Thus, the government's slogan "Developing Malaysia MADANI" can be achieved.

Suggested Citation

  • Azlina Rahim & Vani Tanggamani & Hamidah Bani & Nor Ashikin Alias, 2024. "Microcredit Clients’ Financial Literacy Towards Financial Inclusion and Sustainability," Information Management and Business Review, AMH International, vol. 16(1), pages 274-278.
    • Handle: RePEc:rnd:arimbr:v:16:y:2024:i:1:p:274-278
    DOI: 10.22610/imbr.v16i1(I).3717
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/3717/2427
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/3717
    Download Restriction: no
    File URL: https://libkey.io/10.22610/imbr.v16i1(I).3717?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Shailesh Rastogi & Vikas Tripathi & Sunaina Kuknor, 2021. "Informational role of futures volume for spot volatility," Pacific Accounting Review, Emerald Group Publishing Limited, vol. 34(1), pages 49-69, August.
    2. Maeenuddin & Shaari Abd Hamid & Mochammad Fahlevi & Annuar MD Nassir & Padzil Mohd Hashim, 2023. "Predictors of microfinance sustainability: Empirical evidence from Bangladesh," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(1), pages 2202964-220, December.
    3. Joanna Ledgerwood, 2013. "The New Microfinance Handbook : A Financial Market System Perspective," World Bank Publications - Books, The World Bank Group, number 12272, April.
    4. Annamaria Lusardi, 2019. "Financial literacy and the need for financial education: evidence and implications," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 155(1), pages 1-8, December.
    5. repec:rza:wpaper:529 is not listed on IDEAS
    6. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    7. Ibrahim Majeed Ajibola & Daud Omotosho Saheed & Lukman Adedoyin, 2020. "Impact Of Microfinance Institutions On Financial Literacy In North Central Geo-Political Zone Nigeria," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 9(4), pages 9-25.
    8. Nyankomo Marwa & Meshach Aziakpono, 2015. "Financial sustainability of Tanzanian saving and credit cooperatives," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 42(10), pages 870-887, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ivan Gumilar Sambas Putra, 2025. "Unpacking the influence of parental and peer support on youth financial literacy and saving behavior in Indonesia," Jurnal Siasat Bisnis, Management Development Centre (MDC) Department of Management, Faculty of Business and Economics Universitas Islam Indonesia, vol. 29(2), pages 194-210.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lim Soyoung & Jung Hongjoo, 2025. "Determinants of Insurance and Insurer Preferences Among Financial Consumers in ASEAN: Evidence from Myanmar, Vietnam, and Indonesia," International Review of Financial Consumers, Sciendo, vol. 10(2), pages 38-52.
    2. Mansi Yadav & Priyanka Banerji, 2025. "Digital financial literacy, saving and investment behaviour in India," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 27(2), pages 489-507, August.
    3. Mequanint B. Melesse & Amos Nyangira Tirra & Yabibal M. Walle & Michael Hauser, 2023. "Understanding the Determinants of Aspirations in Rural Tanzania: Does Financial Literacy Matter?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(6), pages 1294-1321, December.
    4. Sufian Radwan Almanaseer & Zaher Abdel Fattah Al-Slehat & Bader Mustafa Al Sharif & Sulieman Daood Aloshaibat & Yazan Emnawer Al-Haraisa & Mohammad Abdlwhab Almahasneh, 2024. "Financial Literacy and Mobile Banking Usage: The Moderating Role of Demographic Characteristics," International Review of Management and Marketing, Econjournals, vol. 14(6), pages 424-432, October.
    5. Löfgren, Åsa & Nordblom, Katarina, 2024. "Reconciling sustainability preferences and behavior — The case of mutual fund investments," Journal of Behavioral and Experimental Finance, Elsevier, vol. 41(C).
    6. Wan Musyirah Wan Ismail & Noorzalyla Mokhtar & Nor Maslia Rasli Samudin & Nurhafizah Mohd Zolkapli & Noor Rafhati Romaiha, 2025. "Financially Vulnerable and Financial Management Among Fresh Graduates Entering the Workforce: Youth Bankruptcy Soars," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(5), pages 4715-4720, May.
    7. Marta Cota & Ante Sterc, 2024. "Financial Skills and Search in the Mortgage Market," CERGE-EI Working Papers wp780, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    8. Norashikin Adam & Ngau Duo Seng & Norzahidah Binti Yacob & Mohd Sufian Ab Kadir, 2026. "Financial Literacy in the Era of Digital Finance: A Bibliometric Analysis and Future Research Agenda (2008–2026)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(3), pages 5952-5963, March.
    9. Gentjan Çera & Khurram Ajaz Khan & Jaroslav Belas & Humberto Nuno Rito Ribeiro, 2020. "The Role of Financial Capability and Culture in Financial Satisfaction," Economic Papers, The Economic Society of Australia, vol. 39(4), pages 389-406, December.
    10. Fuzhong Chen & Jingxin Lu & Jiaying Li & Wenting Wang & Horlane Bissielou, 2020. "Sustainable Financial Education and Consumer Life Satisfaction," Sustainability, MDPI, vol. 12(3), pages 1-21, February.
    11. Hugo Reis & Lara Wemans, 2022. "Financial literacy of 15 years-old in Portugal: Evidence from PISA 2018," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    12. Duan, Wenjie & Yu, Xinhang & Wang, Zichuan & Chai, Xue, 2024. "Financial resilience-focused program: A single group pretest–posttest intervention to change financial risk perception among teenagers in an ethnic minority poverty-stricken area in China," Children and Youth Services Review, Elsevier, vol. 164(C).
    13. S. Ananda & Raghavendra Prasanna Kumar & Tamanna Dalwai, 2024. "Impact of financial literacy on savings behavior: the moderation role of risk aversion and financial confidence," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(3), pages 843-854, September.
    14. repec:bcp:journl:v:9:y:2025:i:10:p:1395-1409 is not listed on IDEAS
    15. Luc Arrondel, 2020. "Financial literacy and French behaviour on the stock market," Working Papers halshs-02505320, HAL.
    16. repec:ptu:bdpart:e202205 is not listed on IDEAS
    17. Sunwoo T. Lee & Kyoung Tae Kim, 2022. "A Decomposition Analysis of Racial/Ethnic Differences in Financial Knowledge and Overconfidence," Journal of Family and Economic Issues, Springer, vol. 43(4), pages 815-831, December.
    18. Karthikeyan Shanmugam & Vijayabanu Chidambaram & Satyanarayana Parayitam, 2023. "Relationship Between Big-Five Personality Traits, Financial Literacy and Risk Propensity: Evidence from India," IIM Kozhikode Society & Management Review, , vol. 12(1), pages 85-101, January.
    19. Andrea Bacchiocchi & Federico Favaretto & Germana Giombini, 2025. "Balancing Interests: Economic Incentives in Financial Education for Households and Banks," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(2), pages 515-545, July.
    20. Aziza Imane El Hachimy & Said Toufik, 2025. "Artificial Intelligence as a Driver of Financial Education: Opportunities and Challenges [L'intelligence artificielle comme levier d'éducation financière : opportunités et limites Artificial Intelligence as a Driver of Financial Education: Opportu," Post-Print hal-05311489, HAL.
    21. Long She & Lan Ma & Saeed Pahlevan Sharif & Sitara Karim, 2024. "Millennials’ financial behaviour and financial well-being: the moderating role of future orientation," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(4), pages 1207-1224, December.
    22. Kaiser, Tim & Lusardi, Annamaria & Menkhoff, Lukas & Urban, Carly, 2022. "Financial education affects financial knowledge and downstream behaviors," Journal of Financial Economics, Elsevier, vol. 145(2), pages 255-272.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arimbr:v:16:y:2024:i:1:p:274-278. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/imbr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.