Our Correspondent
KOHIMA, JULY 2
As a bid to taking the rural communities forward, a training program on bookkeeping for members of the Joint Liability Group (JLG) was conducted in Sechü Zubza, kilometers away from the capital town Kohima, on Thursday, July 2.
The training was organized by the National Bank for Agriculture and Rural Development (NABARD), Nagaland Regional Office, and was attended by women folks representing 12 JLGs from Sechü Zubza and Jotsoma.
A JLG is an informal group comprising 4-10 individuals coming together for the purpose of availing bank loans on individual basis or through group mechanism against mutual guarantee. Generally, the members of a JLG would engage in a similar type of economic activity in the agriculture and allied sector.The members would offer a joint undertaking to the bank that enables them to avail loans. JLG members are expected to provide support to each other in carrying out occupational and social activities.
Speaking at the training program, Assistant General Manager (DD), NABARD, Bendang Aier highlighted the importance of bookkeeping to the members present.
Stating that women groups are more reliable, Aier also shared his expectations on women folks for the successful implementation of the JLG scheme. He also invited more women groups to come forward and avail the JLG scheme, provided they remain committed and dedicated.
Chief Manager of Lead Bank, Lanuteka Imchen, emphasized on the importance of forming genuine groups, so that both the banks and the JLGs benefit from one another. He further urged the members to form their groups well so that they benefit in the long run.
Stating that banks are meant for the general public, he advised the members to approach the banks to get to know more about the schemes available.
Resource persons for the training program were Selabeituo Theünuo, and Vitsizo, both from National Rural Livelihood Mission.
Objectives of JLG
• To augment flow of credit to farmers, especially small, marginal, tenant farmers, oral lessees, share croppers / individuals taking up farm activities.
• To serve as collateral substitute for loans to be provided to the target group.
• To build mutual trust and confidence between bank and the target group.
• To minimize the risks in the loan portfolio for the banks through group approach, cluster approach, peer education and credit discipline.
• To provide food security to vulnerable section by enhanced agriculture production, productivity and livelihood promotion through JLG mechanism.
Who can form JLGs?
Business Facilitators, NGOs, Farmers Clubs, Farmers Associations, Panchayat Raj Institutions (PRIs), Krishi Vikas Kendras (KVKs), State Agriculture Universities (SAUs), Agriculture Technology Management Agency (ATMA), Bank branches, PACS, other cooperatives, Govt. Depts., Individuals, Input dealers, and Document writers (in cooperative banks), MFIs / MFOs, etc.
Savings
JLG members need to be encouraged to save regularly. Branches may open savings account by the JLG / individual members of the JLG to ensure regular savings and thrift habit amongst them. However the quantum of loan to be given to the groups should be related to the credit needs of the enterprise and not to the quantum of savings.
JLG Models
Branches can finance JLGs by adopting any of the two models.
