JOINT LIABILITY GROUP MODEL – JLG
SHG Finance Plc. originally operated as a rural and semi-urban focused organization by providing Self Help Group based financial services. This population segment was highly underserved by formal financial institutions and presented a significant opportunity for SHG Finance Plc. to accomplish its financial inclusion objectives. By serving this population, SHG Finance Plc. has accumulated sizeable outstanding portfolio and will continue to spread its roots as one of the few rural credit operator that cater to this segment. SHG Finance Plc. has resolved to expand the coverage to the urban and semi-urban poor by rolling out Joint Liability Group (JLG), which is the thrust area for its geographic diversification and for achieving rapid growth.
What is a JLG?
JLG is an informal group of 5 to 10 men & women formed based on trust and knowledge of each other of business and character. They operate their business and live in the same locality. Each group selects a group leader who is responsible to coordinate repayments, liaison with the company, initiate and maintain group peer pressure. Each group member agrees to guarantee the loan of others in the group.
In SHG Finance Plc, we have done away with meeting center concept, resulting in growing customer patronage, as it provides time relief for JLG members to do their jobs without wasting on monthly meetings. Short duration training and loan disbursements within 7 days are other attractions associated with JLG.
JLG product offers help to our customers finance their income generation activities and creation of assets, which have pronounced effect on their quality of life.