ABSTRACT
This research seeks to investigate the impact of peer-monitoring and credit discipline training on ultra-microcredit loan repayment performance. It was performed by analyzing primary and secondary data obtained from Mekaar, an ultra-microcredit program for women, introduced by a state-owned company, PT Permodalan Nasional Madani (PNM), as a part of the national poverty alleviation program. The findings reveal that peer-monitoring and credit discipline training have significant impacts on loan repayment rates. The implementation of a joint liability system enforces Mekaar clients to monitor their peers actively. Participants attended weekly meetings and paid the instalment on time, mainly because of the fear of being judged and scolded by other members. Respondents also realized the importance of credit discipline to determine their creditworthiness in their upcoming credit period.
