Vol. 4, Issue 12, Part E (2018)

Abstract
According to the latest update done by the World Bank, India is home to almost one third of the world’s poor. Though there are so many poverty alleviation programs are currently active by central government and state government in India, microfinance plays an important role to financial inclusion. In the past few decades it has helped out remarkably in reducing the poverty. Analysis show that people who have taken microfinance have been able to increase their income and hence to improve their standard of living. Microfinance is not only about giving micro credit to the poor rather it is an economic development tool whose objective is to help poor to work their way out of poverty. It covers a wide range of services like credit, insurance, savings remittance and also non-financial services like training, counselling educating etc. Microfinance institutions serve as a supplement to banks and in some sense a better one too. The main two forms of group-based credit are - Self-Help Group (SHG) & Joint Liability Group (JLG). This paper discusses all about the Joint Liability Groups which include JLG formation, socio economic impact and JLG problems.