Joint Liablity Groups - Agri & Rural

Eligibility

Model A - Financing individuals in the JLG.

• Each member of the JLG should be provided an individual KCC / GCC or term loan. The financing bank could assess the credit requirement, based on the crop to be cultivated, available cultivable land /activity to be undertaken and the credit absorption capacity of the Individual.

Model B – Financing the JLG as a Group.

• The JLG functions, operationally as one borrowing unit in this model.
• The group would be eligible for accessing one loan, which could be combined credit requirement of all its members

Credit Appraisal

Model A:

• The JLG 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 the loan after the branch verifies the individual member’s credentials.

Model B:

• JLGs that undertake savings apart from credit are required to maintain books of accounts. However, the quantum of credit need not be linked to groups’ savings as in the case of SHGs. The credit requirements for the group may be worked out based on combined credit plan needs of individual members.

Documents Required

• i. JLG-1 : Introduction form
• ii. JLG-2 : Application-cum appraisal form
• iii. JLG-3 : Letter of undertaking
• iv. JLG-4: Mutual Guarantee.
• v. D.P. Note and D.P. Note Delivery Letter