at is the Purpose of JLG?

Providing Credit to Small and Marginal Farmers, Tenant Farmers, Oral Lessee, Landless
Labourers and Artisans

Providing Collateral free Loan to Groups

Building Confidence between Groups and Banks

To mitigate the credit risk by way of group dynamics, peer pressure, credit discipline and
cluster approach.

To provide self employment and increase production of agricultural products.

What are the features of JLGs?

1. Members should have a common activity.
2. Members need not to have a land title.
3. Members should be of the same village.
4. Only One member of a family can become a member of JLGs.
5. Members should not be a defaulter of bank loan.
6. Member should hold regular meetings.

Who can promote JLGs?

JLGs can be promoted by Business Facilitators/Correspondents, NGOs, Farmers Clubs, Farmers
Federations, Panchayati Raj Institutions, Agricultural University, Bank Branches, PACS,
Cooperative Societies, Individuals, mFIs and Many Others.

What is difference between SHG and JLG?

SHG is primarily an Saving oriented groups which borrowing power is determined based on its
saving. However, JLG is a credit oriented group which is primarily formed to avail loan from the
bank/formal credit institutions.

What are the Models of JLG ?

A bank can finance a JLG in two ways either financing to group directly or individual in the
groups. In both of the cases all members of JLG is responsible for repaying the loan amount.

Documents Required by Bank for JLG

JLG should be first promoted by any individuals/institutions (JLGs Promoting Institutions).
Thereafter, bank requires KYC, Loan Application, Inter Se Agreement and DPN.

What is the role of JLG Promoting Institutions?

1. Maintaining Account Register for Credit Linkage and Repayment Details Register
2. Capacity Building of JLG members
3. Explaining the benefits of JLGs to Members/banks.

National Bank for Agriculture and Rural Development

(NABARD) - JLGs Scheme
NABARD supports formation of JLG in project mode for availing micro credit from banks
through all its offices across India. The scheme is implemented through good NGO, Farmers
Clubs etc. NABARD has published one booklet on Success Stories of JLGs which is available on
its websi