Scheme for credit to JLGs

The objective is to provide crop loans through institutional agencies to tenant farmers / oral lessees including share croppers and farmers having land without proper records who are not being extended adequate credit support by the agencies due to the inability of the farmers in providing tangible securities and / or producing records regarding their rights on the crops cultivated. Generally, members in JLG would engage in a similar type of activity. In Certain groups, they prefer to undertake different types of activities. A JLG is an informal group comprising of 4-10 individuals.

Farmers eligible to become members of JLGs are those undertaking crop cultivation on lands not owned by them such as:

Tenant farmers or oral lessees including share croppers
Farmers holding land without proper records

Quantum of Loan	There is no ceiling on quantum of loans. However Scale of Finance to be taken into account while sanction of crop loans and in case of development/investment loans branches may refer NABARD Unit cost or other designated agencies
Margin	Upto 1.60 Lakhs –NIL Above 1.60 Lakhs – 15 to 25%
Security	Hypothecation of assets created out of bank finance
Repayment Period	Repayment of the loan shall be specified linking to marketing of the crops. It shall not exceed 12 months for short duration crops and 18 months for long duration crops.