Nabard to promote JLGs in Punjab

Buoyed by the response in Haryana, Nabard’s Punjab Regional Office is all set to popularise joint liability groups (JLGs) in Punjab, which primarily consist of tenant farmers and small farmers cultivating land without possessing proper title of their land.

Nabard has already sanctioned 1,300 JLGs in Punjab to be constituted by the banks. To start with, all the three cooperative banks namely Punjab gramin bank, Satluj gramin bank and Malwa gramin bank in the state would implement the scheme. While in Haryana, according to the data, the scheme was introduced in 2009, and till date 728 groups have been formed involving 3,000 member and has disbursed Rs 10 crore to the JLGs.

Speaking to Business Standard, Punjab Regional Office General Manager Mahendra Kumar said, “Initially, we had sanctioned 1,300 JLGs for the state. We have written to cooperative banks for their implementation. We will take the senior bankers of these cooperative banks to Rajiv Gandhi Charitable Trust, Rae Bareilly, where the scheme has been implemented and has received huge success”.

A JLG is an informal group comprising preferably of four to 10 individuals coming together for the purpose of availing bank loan at an interest rate of about 11-12 per cent either singly or through the group mechanism against mutual guarantee. The JLG members would offer a joint undertaking to the bank which enables them to avail loans and its members are expected to engage in similar types of economic activities like crop production. Further, it can be formed primarily consisting of tenant farmers and small farmers cultivating land without possessing proper title of their land.

He also added, Nabard wants to induct Commercial banks for their wide reach in the state and potential in popularising the scheme among farmers.

He said, “Taking a step forward, we want the commercial banks to also adopt and implement the scheme. With wide network of the branches they can play an important role in popularising the scheme”.