JLG

Joint Liability Group

Scheme

Purpose

Loan for Financing individuals in the group under Model A where the group should prepare a credit plan for its individual members and an aggregate limit of that is submitted to the Branch or under Model B where the group would be eligible for accessing one loan, which could be combined credit requirement of all its members

Eligibility

Target Audience

Group can be informal 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.

Other Criteria

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 group members should not be a defaulter to any other formal financial institution

Financials

Quantum

Maximum amount of loan is restricted to Rs.50000/- per individual, under both the above models A & B.

Margin

Nil margin

Rate of interest

Ranges from 10.00% to 11.15% based on quantum

Processing charges

Per member limit up to Rs.50,000 /- - Nil

Per member above Rs.50,000 /- - 0.25% of per member limit.

Tenure

Repayment period

Maximum 5 years including moratorium period

Holiday period

Maximum 18 months based on the activity undertaken

Security

Irrespective of quantum

Hypothecation of assets created out of the loan.