Digital Joint Liability Group (Digital JLG)

• To augment flow of credit to farmers, especially small, marginal, tenant farmers, oral lessees, share croppers/ individuals taking up farming activities.
• To augment flow of credit to Micro Entrepreneurs/ artisans/ individuals in Non-Farm sector activities.
• To provide collateral free loan to the target group.
• To build mutual trust and confidence between bank and the target group through intermediation of Bank Mitra.
• To minimize the risks in the loan portfolio for the banks through group approach, cluster approach, peer education and credit discipline.

A Joint Liability Group (JLG) is an informal group comprising of 5-7 individuals coming together for the purpose of availing bank loan on individual basis against mutual guarantee. Generally, the members of a JLG would engage in a similar type of economic activity in Farm / Non-Farm Sector. The members would offer a joint undertaking to the bank that enables them to avail loans. JLG members are expected to provide support to each other in carrying out occupational and economic activities.

• Members should belong to similar socio-economic status, background and environment carrying out farming and non-farming activities and who agree to function as a joint liability group.
• Members should be residing in the same village/ area/ neighbourhood and should know and trust each other well enough to take up joint liability for individual Loans, as member of JLG.
• Members who have defaulted to any other formal financial institution, in the past, are debarred from the Group Membership.
• More than one person from the same family should not be included in the same JLG.
• Family members of the BC Agent residing in his/ her operational area are also eligible to form JLG.

• All members of the JLG should be active enough to assume leadership of the group to ensure the activities of the JLG. The selection of an effective/ able/ active leader for the JLG is essential as this will ultimately benefit all the JLG members.
• JLG should hold regular meetings which must be attended by all the members regularly to discuss issues of mutual interests.
• The JLGs and evolving JLG structures are expected to build up empathy and understanding and create responsive lending mechanisms leading to greater interaction and interdependence between the members of JLGs.

Banking Correspondent Agent / Bank Mitra of the Bank will assist in forming JLGs comprising 5-7 individuals engaged in similar type of activities. They will also nurture and guide the JLGs all through to make them creditworthy.

Each member of the JLG shall be provided individual Term Loan. Financing branch would sanction the credit requirement, based on the activity to be undertaken and the credit absorption capacity of the individual. All members would jointly execute a Joint Liability Agreement, making each one jointly and severally liable for repayment of all loans taken by all individuals belonging to the group.

• REPAYMENT: Max. 36 months in equated monthly installments.
• RATE OF INTEREST: MCLR+2.00% p.a presently