One innovation to extend credit to the poor that simultaneously addresses the asymmetric information problem and enforcement concerns lies in group lending. However, Group lending as an innovation is faced with some challenges in its practice. The purpose of this study is to find out factors affecting the applicability of group lending as innovation strategy for loan borrowing and repayment. The study specifically established the effects of joint liability and its applicability to group performance. This study adopted an explanatory and exploratory design. The target population was members of Women Organization from 779 groups. Simple random sampling technique was used to select 344 members drawn from 174 groups. The primary data for the study was obtained using structured questionnaires. Analysis of data was done using descriptive statistics specifically mean and standard deviation. Inferential statistics applied are Pearson correlation coefficient and multiple regression analysis. Correlations results in table 4.9 showed that joint liability was positively and significantly correlated with loan repayment (r=0.857, ρ