<![CDATA[This study aims to analyze the effectiveness of the joint liability system in reducing non-performing loans and strengthening women’s economic empowerment within the PNM Mekaar program. The research employed a cross-sectional survey design involving 185 active respondents selected through purposive sampling. Data were analyzed using multiple linear regression and paired sample t-tests to examine the relationships among variables and changes in non-performing loan rates before and after the implementation of the system. The findings indicate that the joint liability system improved members’ repayment discipline by 87.6% and reduced the non-performing loan ratio from 8.3% to 2.1%. Social capital dimensions, including social networks, trust, and collective norms, were found to have a positive and significant effect on the system’s effectiveness (p < 0.05). In addition, financial literacy, mentoring quality, and consi stent supervision contributed to the program’s success. These findings highlight the importance of social capital in supporting microfinance sustainability and enhancing women’s economic empowerment.]]>
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