Amount of Loan : Considering that loan to be granted is against the mutual guarantee offered by the group, maximum amount of loan may be restricted to Rs.50,000 per individual both under Model A & B.
Type of Loan
Branch may sanction KCC/ATL depending upon the purpose of loan.
KCC RuPay cards mandatory for all eligible borrowers
Margin : NIL
NABARD Refinance : NABARD will provide 100% refinance assistance under investment credit.
Model A - Financing individuals in the JLG.
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.
Model B – Financing the 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 JLG would prepare a credit plan for its individual members and an aggregate of that is submitted to the branch. The individual members of JLG would be eligible for the loan after the branch verifies the individual member’s credentials.
JLGs that undertake savings apart from credit are required to maintain books of accounts. However, the quantum of credit need not be linked to groups’ savings as in the case of SHGs. The credit requirements for the group may be worked out based on combined credit plan needs of individual members.