21. Financing of JLGs of Tenant Farmers, Small Farmers and Marginal Farmers

Annapoorna

Eligibility

Activity clusters / JLGs preferably with 4 to 10 members predominantly farmers who make their livelihood through paddy cultivation.

Purpose

1. To meet the expenses of paddy cultivation in the lease land (Tenant cultivation) undertaken by the activity clusters on Joint Liability Group (JLGs) basis.
2. To meet the expenses of the paddy cultivation by the activity cluster member in their own land or in lease land under the direction of activity cluster / JLG.

Amount of Loan

1. The quantum of loan to each cluster / JLG will depend on the acreage taken for cultivation.
2. Loan amount will be the maximum of Rs.2 lakh per acre per cluster with a cap of per head borrowing to Rs.50000/-.

Rate of Interest

Interest rates ranges from 1.50% to 2.50% above Base Rate for various limits.

Security

1. Primary – Hypothecation of standing and future crops.
2. Collateral – The per head liability of the individual borrowers is considered as Rs.50000/-, as such no collateral security by way of mortgage of land is envisaged.

Repayment

With in six months or on sale of produce whichever is earlier.