EXPLORING CULTURAL AND SOCIAL BARRIERS TO LOAN REPAYMENT AMONG WOMEN BORROWERS IN TANZANIA

Women entrepreneurs play a vital role in driving economic development and poverty reduction across many nations, particularly in developing economies such as Tanzania. Microcredit programs have emerged over the past four decades as a key financial inclusion strategy aimed at providing small loans to individuals who lack access to formal banking systems, especially women who are often excluded due to limited collateral and financial constraints. These programs are widely recognized as an important instrument for empowering women, promoting self-employment, and contributing to the achievement of global development goals, including poverty alleviation and improved economic participation.Women constitute a significant proportion of microcredit beneficiaries globally, with Micro Credit Institutions (MCIs) targeting them as a primary client base due to their high repayment rates and strong commitment to entrepreneurial activities. Group lending mechanisms are commonly adopted within microcredit schemes to enhance loan accessibility and repayment accountability among borrowers. Through such arrangements, women are able to access financial resources that support small-scale businesses, thereby reducing unemployment and improving household income levels.Despite the positive contributions of microcredit programs, challenges such as repayment difficulties, socio-economic constraints, and structural inequalities continue to affect the effectiveness of these initiatives. In many cases, women borrowers face obstacles that are influenced by broader economic and social conditions, which may limit the full impact of microcredit interventions on sustainable empowerment and economic growth.This paper examines the role of microcredit programs in supporting women entrepreneurs and their contribution to economic development, with a particular focus on their effectiveness in promoting financial inclusion and poverty reduction. It highlights the significance of women’s participation in microcredit schemes and underscores the need for strengthening institutional support systems to enhance repayment performance and entrepreneurial success. The study concludes that while microcredit remains a powerful tool for women’s empowerment, addressing underlying socio-economic challenges is essential for maximizing its developmental impact