JLG

ObjectiveThe Purpose of the Scheme is to augment flow of credit to landless farmers cultivating land as tenant farmers, oral lessees or share croppers and small / marginal farmers as well as other poor individuals taking up farm activities, off-farm activities and non-farm activities.To Extend collateral free loans to tenant farmers through JLG mechanism.To provide food security to vulnerable section through enhanced agriculture production, productivity and livelihood promotion through joint farming.
Maximum Loan As loan to be granted is against the mutual guarantee offered by the group, maximum amount of loan may be restricted to maximum of Rs.50,000/- per individual without margin / security for agricultural loans both under Model A and Model B And maximum of  Rs. 5,00,000/- to the Group as a whole.
Eligibility CriteriaFor Member: Member should not have any over due instalments in case of existing units. For Branch: A minimum 80% recovery at member level (JLG group) is required for the loans disbursed under this scheme, at Bank branch to be eligible for new  loaning under this scheme
Repayment PeriodThe Branch Shall recover the amount in Equated Monthly Installments (EMI). Entire amount shall be recovered in 12 to 36 monthly installments as agreed by the JLG, at the time of entering into an Agreement.
ROIThe Rates of Interest to Borrower is 11.50% *p.a.
* The interest rates are subject to change based on revision by NABARD/TSCAB from time to time.
* Penal interest on the over dues will be charged @ 2% over and above the interest rate at which refinance was disbursed, as in the case of schematic Lending/investment credit.

Documents Required

JLG MODELSBanks can finance JLGs by adopting any of the two models.
Model – A  (Financing Individuals in the JLG)Model A: 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. Similar assessment of credit need would be done in case of off-farm activities like dairy, poultry, etc. and nonfarm activities. All members would jointly execute a loan document, making each one jointly and severally liable for repayment of all loans taken by all individuals belonging to the group.
The mutual agreement needs to ensure consensus among all members about the amount of individual debt liability that will be created including liability created out of the individual KCC. Any member opting out of group or joining the group, will necessitate a new loan agreement, to be kept on record in the bank branch.
Documentation for Model-AIntroduction form
Application cum appraisal form
Inter-se Agreement by all members on Rs.200/- stamp Paper/Franklin
Articles of Agreement by authorized members on Rs.200/- stamp Paper/Franklin
Copy of Proceedings/ Resolution
Joint liability Agreement n Rs.200/- Stamp Paper/Franklin
Appropriate DPN Note
Model – B (Financing 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. The credit assessment of the group could be based on the available cultivable area of each member of the JLG/ activity to be undertaken for farm sector, off-farm sector or non-farm sector. All members would jointly execute the document and own the debt liability jointly and severally.
The mutual agreement needs to ensure consensus among all members about the amount of individual debt liability that will be created. Any change in composition of the group, will lead to a new document being registered by the bank branch. 
Documentation for Model-BIntroduction form
Application cum appraisal form
Joint liability Agreement n Rs.200/- Stamp Paper/Franklin
Appropriate DPN Note
Copy of Proceedings/ Resolution
Inter-se Agreement by all members on Rs.200/- stamp Paper/Franklin
Articles of Agreement by authorized members on Rs.200/- stamp Paper/Franklin