Financing to Joint Liability Groups (JLGs)

General Features of JLGs

A Joint Liability Group (JLG) is an informal group comprising a 4-10 individuals coming together for the purpose of availing Bank Loan on individual basis or through Group mechanism against mutual guarantee. Generally, the members of a JLG would engage in a similar type of economic activity in the Agriculture and Allied sector. The members would offer a Joint Undertaking to the Bank that enables them to avail loans. JLG members are expected to provide to each other in carrying out occupational and social activities.

Size of the Group

The group size should preferably be between 10 to 20 members.

Age

Minimum 21 years ; Maximum: 65 years

Loan Amount

No Minimum or Maximum limit

Margin

There is no margin requirement. The group corpus /savings are treated as Margin.

Interest Rate 

As per Bank's guidelines  

Useful Links

RBI NABARD IBA BCSBI NPCI Rupay