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Informal group comprising 4-10 individuals.

Intended to reach clients viz. Tenant farmers, share croppers, oral lessees, farmers with small land holdings without proper land records. The scheme is extended for covering groups other than farmers. Informal group comprising 4-10 individuals.

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Informal group comprising 4-10 individuals.

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  1. Intended to reach clients viz. Tenant farmers, share croppers, oral lessees, farmers with small land holdings without proper land records. • The scheme is extended for covering groups other than farmers.

  2. Informal group comprising 4-10 individuals. • For the purpose of availing bank loan against mutual guarantee. • JLG members to engage in similar type of economic activities.

  3. Bank branches, PACS, Government Departments • NGOs, Farmers Clubs, Farmers Associations • Panchayat Raj Institutions (PRIs), Krishi Vikas Kendras (KVKs) • Agriculture Technology Management Agency(ATMA)

  4. Primarily to be a credit group • Voluntary savings • Loan amount not to be linked with savings • JLG members to be encouraged to open individual “no frills” account.

  5. Belong to similar socio-economic status, background to form a homogeneous group • Residing in the same village/ area/ neighborhood • Defaulters to any financial institution not to be taken as members • Not to include more than one member of the same family

  6. ModelA Model B • Financing individuals in the group • All members to execute one inter-se document making each one jointly & severally liable for repayment • Financing bank to assess credit requirement • Financing the groups • JLG to function as one borrowing unit • If the member want to save, SB A/c can be opened in the name of the JLG

  7. Maximum loan upto Rs. 50,000/- per individual under both model “ A” and model “B”

  8. Promoting institution to decide ROI. • Banks may consider providing incentives for prompt repayment • No collaterals except mutual guarantees offered by the members

  9. Rs. 2000/- per group for Promotion and Credit linkage. • 1st installment of Rs 1000/- released on sanction of loan • 2nd installment on commencement of repayment. • 3rd installment on satisfactory repayment. • Capacity building of stakeholders - Training Programmes & Exposure Visits • 100% refinance available from NABARD

  10. T H A N K S

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