Joint Liability Group

A Joint Liability Group (JLG) is a collective arrangement where a group of farmers or individuals come together to share the responsibility of repayment for a loan taken collectively. Typically used in rural and agricultural financing, the JLG concept allows small farmers or entrepreneurs, who may not have access to individual credit or collateral, to access loans from financial institutions.

The JLG system is based on the principle of mutual trust and accountability among the group members. It is particularly useful for farmers, women, or marginalized groups who do not have access to formal credit facilities. Members of the JLG pool their resources to secure loans, share responsibility for repayment, and ensure that no one individual defaults on the loan.