Joint Liability Groups (JLGs)

• Description: JLGs consist of 4-10 individuals who come together to take a joint loan from a microfinance institution. Each member is responsible for repaying the loan, and if one member defaults, others are liable.
• Success Story: This model has been successful in India and other developing countries, particularly for agricultural loans, where small farmers form groups to access credit for farming activities.
• Key Features:
• Shared responsibility for loan repayment
• Encourages collective entrepreneurship
• Often backed by government or NGO initiatives
• Suitable for farming and small business groups