To provide credit to tenant farmers cultivating land either as oral lessees or sharecroppers and small farmers, who do not have proper title to their landholding, through financing of JLG.. Finance is provided to the members of the JLGs to meet the credit requirements including crop production, consumption, marketing, and other productive purposes. 


Who should constitute the JLG?

i) Members should be of similar socio-economic status and background carrying out farming activities and who agree to function as a joint liability group.

ii) The group members should not be a defaulter to any other financial institution.

iii) JLGs should not be formed with members of the same family and more than one person from the same family should not be included in the JLG.

iv) The group should be formed preferably with 4 to 10 members to enable group members to offer mutual guarantee 


JLG Models

Model A: The group members are eligible for individual loans on executing an inter-se guarantee agreement.

Model B: The group is eligible for getting one loan, which could be combined credit requirements of all its members. 


Loan amount: Maximum loan amount is Rs 50000/ per individual, under both models. 

Security: Only mutual guarantee of the members. 

Repayment: Repayment depends on the purpose for which the loan is availed.