Microcredit as a public health initiative? Exploring mechanisms and pathways to health and wellbeing

The widening health gap between the best and worst-off in UK requires innovative solutions that act upon social, economic environmental causes of ill-health. Initiatives such as microcredit have been conceptualised having potential to on social determinants health. However, pathways lead this impact yet be empirically explored. People living low incomes, who are financially-excluded, require access credit cope with everyday financial needs. While research shows connections debt health, link is often focused over-indebtedness negative outcomes. In paper, we investigate responsibly-delivered wellbeing borrowers. 2016-17, in-depth, semi-structured interviews were undertaken fourteen borrowers from two providers offering personal business microloans, operating Glasgow, United Kingdom. Findings presented, using an analytic lens, illustrated a conceptual model explaining loan mechanisms connecting wellbeing. Microcredit, through which it delivered, perceived by participants positively impacting their Access flexible, responsibly-delivered, microloans enabled plan feel secure when faced (un)expected events, reducing associated stress, sustaining relationships empowering take greater control over lives. For some, receiving was stressful, still needs repaid. Such stress can also exacerbated particular aspects lending model; for example, group lending. Our results contribute growing evidence inclusion approaches wellbeing, highlighting role public initiative need support ‘alternative’ spaces serve financially-excluded.