JLG Full Form In English
JLG Full Form stands for Joint Liability Group. It is a small group of individuals, usually farmers, micro-entrepreneurs, or rural borrowers, who come together to access loans from banks or microfinance institutions. In a Joint Liability Group, all members mutually guarantee each other’s loans. This means if one member fails to repay, the other members are collectively responsible for the repayment. JLGs are widely used in financial inclusion programs to help people without collateral obtain credit.
JLG Full Form In Hindi
JLG Full Form in Hindi is संयुक्त देयता समूह. यह एक छोटा समूह होता है जिसमें आमतौर पर किसान, छोटे व्यवसायी, या ग्रामीण उधारकर्ता शामिल होते हैं। इस समूह में सभी सदस्य एक-दूसरे के ऋण की गारंटी लेते हैं। यदि कोई सदस्य ऋण चुकाने में असफल होता है, तो अन्य सदस्य मिलकर भुगतान के लिए जिम्मेदार होते हैं। JLG का उद्देश्य उन लोगों को आसान ऋण सुविधा प्रदान करना है जिनके पास गिरवी रखने के लिए संपत्ति (collateral) नहीं होती।
Read More: QIB Full Form In English And Hindi
Frequently Asked Questions
What is the full form of JLG?
JLG Full Form is Joint Liability Group.
What is a Joint Liability Group (JLG)?
A Joint Liability Group is a small group of individuals who come together to obtain loans. All members mutually guarantee each other’s repayment, making the group collectively responsible.
Who can form a JLG?
Typically, small farmers, micro-entrepreneurs, self-employed individuals, and rural borrowers can form a JLG. Members usually share similar economic activities or backgrounds.
How many members are required in a JLG?
A JLG generally consists of 4 to 10 members, depending on the bank or microfinance institution’s guidelines.
What is the main purpose of a JLG?
The primary purpose is to help individuals without collateral access formal credit by leveraging group-based mutual guarantees.
Is collateral required for JLG loans?
Most JLG loans are collateral-free, as the group guarantee replaces the need for traditional security.
What happens if one member defaults?
If one member fails to repay, the other members are jointly liable and must cover the repayment.
Conclusion
JLG, or Joint Liability Group, is an important financial mechanism designed to promote financial inclusion, especially for small borrowers who lack collateral. By sharing responsibility among members, JLGs reduce lending risks for banks and create easier access to credit for individuals. This model has proven effective in supporting farmers, small entrepreneurs, and rural communities, ultimately contributing to economic growth and self-employment opportunities.