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 -1Y MCLR (8.85% at present) + 0.20%(SP)+0.95%(RP)

Above Rs.3.00 to Rs.5.00 Lakhs - 1Y MCLR (8.85% at present) + 0.20%(SP)+1.60% (RP)

Above Rs.5.00 Lakhs - 1Y MCLR (8.85% 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.50,000 per member   - NIL

Above Rs.50,000 per member - 0.25% of the limit

Conditions apply

*For more details, please contact our nearest branch

*Click here to apply  digitalloans.iob.in