Purpose – This study aims to direct war-affected youth’s self-identity towards microcredit. Youth is an important life stage for individuals’ self-identity formation. Features, labels and meanings associated with products can influence youth’s self-identity development.

Design/methodology/approach – A quantitative-survey method was used for data collection. The sample comprised 1,160 youth microcredit users aged between 18 and 24 years selected from the Northern Province of Sri Lanka. Analysis was conducted mainly in three steps, testing measurement model, hypotheses testing and testing for moderation effects.

Findings – The findings revealed that positive affect directed the youth’s self-identity towards microcredit, whereas perceived deterrents played a negative role. Knowledge of microcredit enhanced these attitudes. Also, entrepreneurial desire enhanced the association between positive affect and self-identity, and weakened the negative association between perceived deterrents and self-identity.

Research limitations/implications – The data were cross-sectional and this study was conducted in one country. So, the model needs replication amongst youth in other war-affected countries and with longitudinal data. Additionally, this study is open for expansion by incorporating other constructs that can draw vulnerable youth’s self-identity around products.

Practical implications – This research suggests how war-affected youth’s self-identity can be drawn around microcredit.

Originality/value – This study proposes a unique conceptual model to draw vulnerable youth’s self-identity closer to products beneficial for their well-being, in this case, microcredit.