JLG Full Form
JLG full form is Joint Liability Group.
This concept introduced by NABARD in the year 2014.
In simple words, JLG is a group of 4-10 people of the same village or same area of homogeneous nature and of the same socioeconomic background who are mutually come together as a group to avail loan from the Bank. JLG loans are collateral-free loans. The joint liability JLG system doing very well in North India particularly, Uttar Pradesh, Madhya Pradesh and Haryana.
JLG maximum member is 10.
Banks provide finance to JLGs in two ways. One is as individual capacity. The second one is as a group.
In both cases, the whole group is liable for the loan. NABARD is providing refinance benefits to the banks for giving loans to JLGs.
Joint Liability Group are promoted by
Bank Branches,
Business Correspondents,
Farmers clubs,
Panchayat Raj Institutions,
Krisk Vikas Kendras,
Agricultural Universities,
NGOs,
PACS, and other Co-operatives Government Departments etc.
What is SHG and JLG
Self Help Group is basically saving orinted group. In SHG borrowing power is decided on the basis of savings.
Joint Liability Group is basically credit orinted group. These groups are formed to availing loans from the Bank.
Joint Liability Group Features
Members should have a similar occupation or business.
Members need not to necessarily have a land in there name.
Members should be of the same village or same area or same location.
In a family only one member can become a member of JLGs.
Members should not have any default loan in the bank.
Documents required by the bank to give loan to JLG
KYC documents,
Loan agreement
Inter Se Agreement,
DPN.
Conclusion:
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