Features
# Members should engage in a common activity. # Members are not required to have a land title. # Members should belong to the same village. # Only one family member can join JLGs. # Members cannot have a history of defaults on bank loans. # Members should hold regular meetings.Who can promote JLGs?
JLGs can be promoted by Business Facilitators/Correspondents, NGOs, Farmers Clubs, Farmers Federations,SHG vs JLG
SHG is primarily a saving oriented group in which borrowing power is determined based on its saving. However, JLG is a credit oriented group which is primarily formed to avail loan from banks or formal credit institutions.Models
A bank can finance a JLG in two ways, either financing to a group directly or to an individual in the group. In both cases, all members of a JLG are responsible for repaying the loan amount.Documents required by banks for JLG
JLG should be first promoted by any individuals or institutions (JLGs Promoting Institutions). Thereafter, banks require KYC, Loan Application, Inter Se Agreement and DPN.National Bank for Agriculture and Rural Development (NABARD) - JLGs Scheme
NABARD supports the 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 website.References
{{reflist Types of business entity Business organisations based in India Financial services in India Agricultural finance in India *