Last Updated on: 28/01/2025
Home >> Agri & Rural >> Agriculture Credit >> JOINT-LIABILITY-GROUP
JLG – (Joint Liability Group)
Objective
To augment flow of credit to tenant farmers cultivating land either as oral lessees or sharecroppers and small farmers who do not have proper title of their land holding through formation and financing of JLGs both farm and non-farm activities
JLG Model
Model A: Financing individuals in the group
The model would prepare a credit plan for its individual members and an aggregate of that is submitted to the Branch. The individual members of JLG would be eligible for loan after the Branch verifies the individual members' credentials. All members would jointly execute one inter-se document (making each one jointly and severally liable for repayment of all loans taken by all individuals in the group).
Model B: Financing the Group
The JLG would consist preferably of 4 to 10 individuals and function as one borrowing unit. The group would be eligible for accessing one loan, which could be combined credit requirement of all its members.
Quantum of Loan
Maximum amount of loan is restricted to Rs. 50000/- per individual, under both the above models A & B.
Eligibility
Informal group comprising preferably of 4 to 10 individuals together for the purpose of availing bank loan either singly or through the group mechanism against mutual guarantee
JLGs can be formed primarily consisting of tenant farmers/oral Lessees /Sharecroppers /individuals taking up farming activities /cultivating land without possessing proper title of their land
Members should be of similar socio-economic status and background carrying out farming activities and who agree to function as a Joint Liability Group
The groups shall be organised by like-minded armers/individuals and develop mutual trust and respect.
The members should be residing in the same village / area and should know and trust each other well enough to take up joint liability for Group / Individual loans.
The group member should not be a defaulter to any other formal financial institution.
Security
Prime Security: Hypothecation of assets created out of the loan.
Collateral: Nil as mutual guarantee offered by the JLG members are obtained.
Margin
Nil Margin
Repayment
Maximum 5 years including moratorium period
Holiday Period
Maximum 18 months based on the activity undertaken
Rate of Interest
For Agriculture and allied activities
Up to Rs. 3.00 Lakhs -1 Year MCLR (9.10% at present) + 0.20%(SP)+0.95%(RP)
Above Rs. 3.00 to Rs. 5.00 Lakhs - 1 Year MCLR (9.10% at present) + 0.20%(SP)+1.60% (RP)
Above Rs. 5.00 Lakhs - 1 Year MCLR (9.10% at present) + 0.20%(SP)+2.10%(RP)
For MSME activities including processing units
Up to Rs. 10.00 Lakhs: RLLR+0.40(SP)+1.35(RP)
Processing charges
Up to Rs. 25000 per member - NIL
Above Rs. 25000 per member - 0.25% of the limit
Conditions apply
*For more details, please contact our nearest branch
⇨ *Click here to Apply - digitalloans.iob.in