Financing growth & transforming rural India.

Bank of Baroda, for rural India, with rural India.

Joint Liability Group Loan

  • Benefits
  • Features
  • Eligibility Criteria
  • Document Required
  • Fees & Charges
  • Most Important Terms & Conditions (MITC)

Joint Liability Group Loan : Benefits

  • No collateral and margin is required for loans up to Rs 10.00 Lakhs
  • Nil Pre-payment Charges

Joint Liability Group Loan : Features

  • 4-10 individuals coming together for the purpose of availing bank loan on individual basis or through group mechanism against mutual guarantee.
  • The members should be residing in the same village/ area/ neighbourhood and should know and trust each other well enough to take up joint liability for group/individual Loans.
  • The JLG should hold regular meetings under effective leader of group to discuss issues of mutual interests.

Joint Liability Group Loan : Eligibility Criteria

  • Members should belong to similar socio-economic status, background and environment carrying out farming and Allied activities and who agree to function as a joint liability group. The groups should be homogeneous and organized by likeminded farmers/Individuals and develop mutual trust and respect.
  • The members should be residing in the same village/ area/ neighbourhood and should know and trust each other well enough to take up joint liability for group/individual Loans.
  • Members who have defaulted to any other formal financial Institution, in the past, are debarred from the Group Membership.
  • More than one person from the same family should not be included in the same JLG.

Joint Liability Group Loan : Document Required

  • KYC Documents (AADHAR, Voter ID, PAN Card, Driving License etc.)
  • Passport Size photo
  • Letter of Sponsorship from the Sponsoring agency.
  • JLG Membership Form
  • Loan Application Form
  • Mutual Liability Agreement

Joint Liability Group Loan : Fees & Charges

No loan Processing fee/ Documentation Charges/inspection charges will be levied if the per member exposure is up to Rs. 25,000/-.

Joint Liability Group Loan : Most Important Terms & Conditions (MITC)

Type of facility Cash Credit/Term Loan
Quantum of Loan
  • Maximum Loan for Individual: Rs 1.00 Lakh
  • Maximum Loan to JLG: Rs 10.00 Lakhs
Rate of Interest
  • Limit upto Rs 3.00 Lakhs: One year MCLR+SP
  • Limit above Rs 3.00 Lakhs: One year MCLR+SP+1.00%
Pre- payment and foreclosure No prepayment penalty and foreclosure charges applicable
Security Mutual Liability of all members
Repayment Monthly

Frequently Asked Questions (FAQs)

  • What is a joint liability group loan?

    Joint Liability Group loan (JLG) is when an informal group of 4-10 individuals form a group to avail a bank either individually or collectively. The decision to form a group should be mutual and every member should take part in similar types of economic activities.

  • What is the maximum loan amount in JLG?

    For individuals: Rs. 1 lakh. For groups: Rs. 10 lakhs.

  • What kind of collateral is required for the JLG loan?

    There is no such requirement asked by a bank to a JLG.

  • Which member in JLG group is liable for repaying the JLG loan?

    Each member is liable to repay the JLG loan scheme.

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