Joint Liability Group (JLG) model

About Joint Liability Group (JLG) model

A Joint Liability Group (JLG) is an informal group comprising of 10-30 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 certain groups, members may prefer to undertake different type of economic activities as well. The members would offer a joint undertaking to the bank to enable them to avail loans. JLG members are expected to provide support to each other in carrying out occupational and social activities.