Joint liability group (JLG)

Joint liability group (JLG)

Purpose / Objective

  • To augment flow of credit to tenant farmers cultivating land either as oral lessees or share croppers an small farmers who do not have proper title of their land holding through formation and financing of JLGs.
  • To extend collateral free loans to target clients through JLG mechanism.
  • To build mutual trust and confidence between tenant farmers.


  • JLGs consist of tenant – farmers and small farmers cultivating land without possessing proper title of their land
  • JLGs should be of similar economic status and carry out farming activities who agree to function as a joint liability group.
  • Members should be engaged in Agri activity for a period not less than one year.
  • JLG members should not be a defaulter and nor from the same family.

Amount of Loan

  • For Agriculture, Allied Agri and Non Agri activity the maximum loan to the group will be    Rs 10,00,000/- subject to a maximum of Rs 1,00,000/- to an individual.
  • For Tenant and oral lessees the maximum loan amount is  Rs 5,00,000/ to the group subject to a maximum of   Rs  50000/- to an individual

Interest Rates

  • For Crop Loans :
    Amount Slab(Rs. in Lakhs) Interest Rate
    KCC upto Rs 3.00 lakh 7% p.a. (under interest subvention from Govt. of India)
  • For Term Loans :
    Amount Slab(in Lakhs) Interest Rate
    Upto 0.50/ 1.00 lakh  per individual or Rs 5.00 lakh/ Rs 10.00 lakh for the group MCLR 1 YR + 2.75 %


  • Loan period varies from 6 months to 60 months depending on the activity for which the loan is sanctioned.


  • No collateral. However, mutual guarantee offered by the JLG members are kept on record.

( Last modified on May 05, 2022 at 04:05:21 PM )