An evaluation of microfinance in India a study with special reference to Joint Liability Group (JLG)

The National Bank for Agriculture and Rural Development (NABARD) has launched a Joint Liability Group scheme in 2004–05, to help the people like tenant farmers, sharecropper, oral lessees, etc, through formal banking system. The members should be homogeneous; both in terms of activities and interms of the risk associated with such activities. The main aim of Joint Liability Group has been tofacilitate mutual loan guarantee and implementation of joint liability agreement, making the memberspersonally and jointly liable for payment of interest and loan obtained from the bank. The membersshould be integrated in their behaviour with honesty to repay the loans. India is home to almost onethird of the world's poor, though many poverty alleviation programs are currently active in India, bycentral government and state government. Microfinance plays a major role in alleviating poverty andfinancial inclusion. In the past few decades, it has helped remarkably in eradicating poverty. Microfinance is not just about giving micro credit to the poor rather it is an economic development toolthat's objective is to assist poor to come out of poverty. The main form of group-based credit is Self Help Group Bank Linkage Programme (SHG-BLP) and Joint Liability Group (JLG). This paper discussesabout the Joint Liability Groups, and difference between SHG-BLP and JLG model. The JLGs have beenpresented in number and in percentage in this research paper region-wise and state-wise from 2010-11to 2018–19. Loan sanctioned by banking sector to JLGs, region wise and state wise have been shown inpercentage from 2010–11 to 2018–19.