A JLG is an informal group of 4 to 10 individuals engaged in similar economic activities in the farm or non-farm sector who come together to avail bank loans either individually or through the group mechanism against the mutual guarantee.

JLGs can be formed by Business Facilitators, NGOs, Farmers' Clubs, Farmers Associations, Panchayat Raj Institutions (PRIs), KrishiVikasKendras (KVKs), State Agriculture Universities (SAUs), Agriculture Technology Management Agency (ATMA), Bank Branches, PACS, Other Co-operatives, Government Departments, Individuals, Input dealers, MFIs/MFOs, JLPI, etc.

The objective of JLGs is to augment the flow of credit to farmers, especially small, marginal, tenant farmers, oral lessees, sharecroppers, and individuals taking up farm activities, and to extend collateral-free loans to tenant farmers through the JLG mechanism.

Cash credit, short-term loans, or term loans are available depending upon the purpose and tenor of the loan.

The loan amount may be restricted to Rs.1.00 lakh per individual without margin/security for agricultural loans and up to Rs.50,000 per borrower for composite loans.

For loans up to Rs.1.60 lakhs, no margin is required. For loans above Rs.1.60 lakhs, a minimum of 10% margin is required.

The security norms for JLG loans include hypothecation of assets financed and mutual guarantee of the JLG members. No collateral security is required.

PAIS and Crop insurance must be obtained as per extant guidelines, and specific forms and documents must be submitted as suggested by NABARD/RBI.

The required documents include an Introduction form, Application cum appraisal form, Letter of Guarantee, Joint liability guarantee, Appropriate DPN Note, Letter of continuity, Hypothecation of asset financed, Mortgage deed, Letter of general lien and setoff, CIBIL-undertaking letter from borrower/guarantors, and any other document stipulated in the sanction.

Yes, individuals can apply for JLG loans as long as they are engaged in similar economic activities with other individuals and meet the eligibility criteria.