What is JLG
Joint Liability Group (JLG) is an informal group having 4-10 individuals with common purpose of availing bank loan on individual basis or through group mechanism against mutual guarantee. Normally, the members of a JLG would engage in a similar type of economic activity in the Agriculture and Allied Sector. JLG members are expected to provide support to each other in carrying out occupational and social activities. They would offer a joint undertaking to the bank that enables them to avail loans.


  1. To boost flow of credit to farmers who take up farm activities.
  2. To develop mutual trust between bank and the target group.
  3. To reduce the risks in the loan portfolio for the banks through group approach.

Criteria for JLG members:

  1. They should belong to similar socio-economic status, background and environment carrying out farming and Allied activities and who agree to function as a joint liability group.
  2. They should be residing in the same village and should know and trust each other.
  3. Those who have defaulted to any other banks, in the past, are excluded from the Group Membership.
  4. More than one person from the same family should not be included in the same JLG.

Who can form JLGs:

  1. Farmers Clubs, Farmers Associations
  2. Panchayat Raj Institutions (PRIs)
  3. Krishi Vikas Kendras (KVKs)
  4. Individuals and NGOs etc

Savings habit:
JLG members need to make habit and to be encouraged to save regularly. Branches may open savings account by the JLG or individual members of the JLG to make sure regular savings.