Financial literacy and sustainability of rural microfinance: The mediating effect of governance

This research aims to examine the mediating role of microfinance governance in relationship between financial literacy and sustainability. The used purposive sampling method collect data from Women Farmers Group (WFG) “Tapa Walla Badi” Mbatakapidu village, East Sumba, Indonesia. survey was conducted November through December 2021 with valid sample for analysis 200 questionnaires. Partial Least Squares-Structural Equation Model (PLS-SEM) analysis. bootstrapping Sobel test were required a better understanding findings. Robust focus group discussion (FGD) made our methodology more reliable. findings show that plays an important transformation rural institutions (MFIs). Financial works positively on sustainability via governance. Age, gender, education, employment situation taken into account literacy. provides comprehensive view policymakers developing MFIs, thus implies urgency promote improve structures within MFIs. local government may create pro-financial inclusion policies support sustainable MFIs by implementing curriculum formal non-formal education.