Joint Liability Group(JLG)
Joint Liability Group scheme is used to provide loan for small tenant farmers, farmers having share holders and farmers which doesn't have any land records for collateral.
- Provide loan to Oral Lessee, Share Holder farmers and farmers which doesn't have any land record.
- To extend collateral free loan through JLG mechanism.
- To build mutual trust and confidence between bank and borrowers.
- To provide short agriculture loan for wheat and rice.
- Agriculture related activities like Dairy, Goat ship rearing, Cottage industry.
Tenant farmer is one who resides on and farms owned by landlord, tenant farmer is an agriculture production system in which land owner contribute their land and often measure of operating capital and management; while tenant farmers contribute their labor along with at times varying amounts of capital and management.
Oral Lessee is a type of Tenant farmers which uses the land without any written agreements and permission.
Share holder is a type of tenant farmers which pay the land rent by sharing of crops.
No of members in Joint Liability Group should be between 4 to 10 in below mention group none-:
- Oral Lessee
- Share Holder Farmers
- Farmers which doesn't have any land records
- Married women whose husband has ownership of land and resides out of village due to job.
- Members should be similar socio economic status, background and enviourment, caring out farming and allied activities agreeing to form a JLG.
- Members should be engaged in agricultural activities not less than 1 year within the area of operations of bank.
- None of the group member should be defaulter to any formal financial institution.
- A JLG should not have more than one person from a family.
- JLG should select a good/able /active/leader for JLG to ensure leadership role for JLG group.
Type of Loan
- Short Term Agriculture Loan
- Agriculture Term
Quantum of Finance
- Maximum amount of loan per member is 50000/-
- Maximum amount of loan for group is 500000/-
- No margin for per member amount 50000/-
- Borrowing limit will be inspected every year.
- Renewed in the interwal of three years.
- In case of term loan Repayment will be in 3 to 7 years, depend on the nature of Borrowers and borrowers need.
For more details please contact to nearest Branch's Branch Manager