What is the Full Form of JLG?

The full form of JLG is Joint Liability Group. It is an informal group of about 4-10 members, formed solely to avail of bank loans. This can be done either individually or as an entire group against a mutual guarantee. It is commonly seen in individuals engaged in a similar economic activity in farming or non-farming sectors. Interestingly, the loan can be short-term or term loan, depending on factors such as the purpose of the loan.   

What is the General Eligibility of JLG Loans?

The general eligibility criteria to avail of JLG loans include:

• Members should be of the same village/area/neighbourhood and should know each other. 
• Members should belong to the same socio-economic status or background to function as a joint liability group. 
• More than one person of the same family should not be included in the same Joint Liability Group. 

Also Read: What is the Full Form of BFM?

JLG Loan Documents 

Documents required to avail of a JLG loan may vary depending on the bank. Here is a list of documents generally required:

• Loan application form
• Mutual liability agreement
• AADAHAR Card / Voter ID / PAN Card /  Driving License
• Letter of Guarantee
• Joint Liability Guarantee

Also Read: What is the Full Form of LTF?

What are the Models of JLG?

Here are the two most common models of Joint Liability Group (JHG) loans:

1. Financing individual loans

The JHG group is eligible to get individual loans from the bank. In this model, every individual is jointly responsible for the repayment of all loans taken by the individuals in the group. 

2. Financing collective loans 

Another common model of JLG is where the bank finances a collective loan for the entire group. The group is eligible to avail of a single loan depending on the credit requirements of all its members. 

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