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 |