The National Bank for Agriculture and Rural Development (Nabard) has launched an initiative for augmenting institutional credit for formation, nurturing and financing of Joint Liability Groups (JLGs). JLGs is an informal group of individuals comprising 4-10 small and marginal farmers, tenant farmers, oral lessees and share croppers.
Under the new scheme, Nabard would provide 100 per cent refinance to banks against their finance to JLGs. “Grant assistance of Rs 2,000 per JLG for over a period of three years will be given to banks, state cooperative banks and regional rural banks” a press release said on Tuesday.
Nabard would provide grants by adopting two models, through financing individuals in the JLG or financing the JLG as a group. Nabard will also provide grant support to farmers clubs, Panchayat Raj institutions, Krishi Vikas Kendras, agricultural universities, primary agriculture credit societies, etc for forming JLGs of farmers and helping them access bank loans.