Joint Liability Group

Loan to women belonging poor and middle income group


  • To augment flow of credit to farmers, especially small, marginal, tenant farmers, oral lessees, share croppers / individuals taking up farm activities.
  • To serve as collateral substitute for loans to be provided to the target group.
  • To build mutual trust and confidence between bank and the target group.
  • To minimize the risks in the loan portfolio for the banks through group approach, cluster approach, peer education and credit discipline.
  • To provide food security to vulnerable section by enhanced agriculture production, productivity and livelihood promotion through JLG mechanism.

Criteria for membership

  • 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. This way the groups would 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.


  • Period of loan is up to 52 week
  • Repayment weekly

Documents required

  • ID and Address proof
  • KYC Document
  • Recent Colour photo
  • Group resolution
  • Inspection Report
  • GRT report
  • Dead of hypothecation
  • Group guarantee
  • D.P. Note
Fixed Deposits Tenure Period Rate of Interest#
Normal Senior Citizen
15 days to 45 days 5.10% 5.60%
46 days to 90 days 5.60% 6.10%
91 days to 179 days 6.30% 6.80%
180 days 6.90% 7.40%
181 days to 15 months 7.10% 7.60%
Above 15 month to 3 years 7.00% 7.50%
Above 3 years to 5 years 7.00% 7.50%
Above 5 years to 10 years 7.00% 7.50%
for 10 years Rs 750000(miss/ Na 8.00%