Joint liability groups in India: Catalyst for financial inclusion: A study through NABARD’s lens

Access to affordable formal credit remains a significant challenge for economically disadvantaged populations, particularly in rural India. The Joint Liability Group (JLG) model has emerged as a viable microfinance solution to bridge this gap. Our present study examines the growth and structure of JLGs in India in recent years. Using data from NABARD’s Status of Microfinance in India, and All India Rural Financial Inclusion Survey reports, we analyse trends in JLG formation, loan disbursement and financial inclusion across different regions of India in 2023-24 compared to 2013-14. Further, a Joint Liability Group-specific Financial Inclusion Index (JLG-FII) has been constructed to assess state-level variations in financial outreach of JLG in some selected states of India.