Joint Liability Groups (JLGs)

A Joint Liability Group (JLG) is an informal group comprising preferably of 4 to 10 individuals coming together for the purposes of availing Bank loan either singly or through the group mechanism against mutual guarantee. The JLG members would offer a joint undertaking to the bank that enables them to avail loans. The JLG members are expected to engage in similar type of economic activities like crop production etc.,. The management of the JLG is to be kept simple with little or no financial administration within the group. The JLG is intended primarily to be a credit group. Therefore, savings by the JLG members is voluntary.