Introduction

JLGs have several advantages, making them a preferred choice in microfinance:

• Risk Sharing: Members share the responsibility for loan repayments, reducing the risk for each individual.
• Group Support: JLGs foster a sense of community and trust among members.
• Higher Repayment Rates: The social pressure within the group often leads to better repayment rates.
• Access to Credit: Even those without collateral can access credit through a JLG.