Joint liability groups (JLGs) - An embryonic scheme of microfinance

Joint Liability Groups (JLGs) in microfinance play quite a significant role in financial inclusion of collateral-less community in India. The present study analysed loan use and repayment pattern in Bank-BC model of JLG financing, impact on employment of member households and of members and also enquired about constraints and suggestions in the functioning of JLGs. JLG loans were mostly invested in livestock and tailoring. JLG members experienced a considerable reduction in unemployment and increase in number of days employed per year. Hiking the first loan amount per JLG member, activity-specific expertise for microenterprises were necessary if members were expected to productively utilize their very first loan. Financial literacy, educating gender equality, capacity building of clients and staffs would promote more viable JLGs.