A Joint Liability Loan is a loan issued to a group of individuals, where each member shares equal responsibility for repayment. This structure is often used in microfinance to provide access to individuals without collateral or strong credit history.

Each member is accountable for repayment, ensuring that the group supports those unable to meet their obligations. It promotes mutual trust and timely repayment, commonly benefiting small businesses, farmers, and self-help groups.

Joint Liability Loans help foster entrepreneurship and financial inclusion, especially in rural and underserved communities.