- Rural development agency Nabard is to roll out a new concept called Joint Liability Group (JLG) to provide institutional credit to small farmers like share croppers, oral lessees and agricultural labourers.
- Conceived on the pattern of Self Help Groups (SHG), Nabard will provide refinance facility to banks for providing lending to small and marginal farmers who are normally deprived of finance.
- JLG aimed to provide institutional credit to small farmers like share croppers, oral lessees and agricultural labourers.
- JLG scheme will be highly beneficial for states like Punjab and Haryana where average land holdings are shrinking and strength of such farmers is large in these states.
- Similar on the pattern of Self Help Groups (SHG), NABARD will provide refinance facility to banks for providing loans and financial assistance to small and marginal farmers who are normally deprived of finance.
- NABARD has already 41 lakh SHGs which are credit linked.
- Chairman and Managing Director (CMD) of NABARD is H K Bhanwala.
About Joint Liability Group (JLG)
- A Joint Liability Group (JLG) is an informal group comprising preferably of 4 to 10 individuals but can be up to 20 members, coming together for the purposes of availing bank loan either singly or through the group mechanism against mutual guarantee.
- The JLG members would offer a joint undertaking to the bank that enables them to avail loans.
- The JLG members are expected to engage in similar type of economic activities like crop production.
- The management of the JLG is to be kept simple with little or no financial administration within the group.
- JLGs can be formed primarily consisting of tenant farmers and small farmers cultivating land without possessing proper title of their land / rural entrepreneurs engaged in non-farm activities.
No comments:
Post a Comment