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

  • iMembers 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
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Select Loans and Advances Type
  • Advances to Food Agro Based Units Under Agriculture
  • Financing Agriclinics & Agribusiness Centres by Agriculture Graduates
  • Baroda Animal Husbandry and Fisheries Kisan Credit Card (BAHFKCC) Scheme
  • Baroda Kisan Credit Card (BKCC)
  • Baroda Kisan Tatkal Loan Scheme
  • Cultivation of Crops (Excluding Plantation and Horticultural Crops)
  • Warehouse Receipt Financing
  • Financing Agencies Providing Custom Services To Farmers
  • Financing Construction of Farm Buildings Structures
  • Financing Development of Dairy, Poultry, Fishery, etc.
  • Financing Four Wheeler Loans to Farmer
  • Financing Irrigation
  • Joint Liability Group Loan
  • Financing Protected Cultivation Projects
  • Financing Tractors and Heavy Agriculture Machinery
  • Financing Under Self Help Groups (SHGs)
  • Financing Installation of Gobar Gas/Bio-gas Plants
  • Financing Solar Home Lighting Scheme
  • Lending to Agriculture Other Priority Sectors demand loan for financing against
  • Loan/Overdraft Against Bank’s Own Deposit (Labod/Odbod)
  • Loan for Installation of Solar Photovoltaic Pump Sets
  • Tractor Loans
  • Overdraft Scheme for Working Capital Assistance to the Food Agro Processing Unit
  • Planters Card Scheme
  • Purchase of Estates/Orchards Growing Traditional Plantation Crops
  • Scheme for Financing Farmer Producer Companies / Organizations (FPCs / FPOs)
  • Scheme for Financing Farm Development Activities
  • Scheme for Financing Mini Dairy Units
  • Scheme for Financing Pradhan Mantri Matsya Sampada Yojana (PMMSY)
  • Animal Husbandry Infrastructure Development fund (AHIDF)
  • Scheme for Financing under Agriculture Infrastructure Fund
  • Shahari Bagwani Yojana
  • Loans for Solis/Godowns for Storage of Agriculture Produce
  • Horticulture Loan Scheme
  • Scheme for Financing Compressed Biogas (CBG)
  • Financing under PM Formalization of Micro Food Processing Scheme
  • Two Wheelers (Motorcycle/Scooter) Loan to Farmer
  • Credit Facility for Food and Agro Business with Warehouse/Storage Receipts Loans

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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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