As many as 5,200 Joint Liability Groups (JLG) will be promoted in Tiruchi district during the current year, according to S. Suresh Kumar, Assistant General Manager, National Bank for Agriculture and Rural Development (NABARD).
Speaking at a function held at Thuraiyur near here, he said banks in the country were expected to link 5 lakh Joint Liability Groups during the current fiscal. About 58,000 JLGs were expected to be linked in the State. The target for banks in Tiruchi was 5,200 JLGs by March 2015.
So far, 2,200 JLGs had been formed. All nationalised banks in the district had been asked to accelerate the process of achieving the target. Since just three months were left for the end of current fiscal, the banks should take steps to identify the groups so as to extend credit link to them. He said that Indian Bank, Thuraiyur, alone had linked 62 JLGs comprising 248 members. It would extend loan to the tune of Rs.50,000 to each member. The beneficiaries would contribute about Rs.10,000 each. The total financial outlay would work out to Rs.1.49 crore. The JLGs would use the loan for rearing milch animals. Similarly, other banks should come forward to promote groups with the support of NABARD, NGOs and other stakeholders at various levels. The NABARD would extend a grant of Rs.2000 to each JLG.
S. Prabakaran, Lead District Manager, said it had been proved that the JLG concept was successful. The repayment rate was also good. Hence, banks must come forward to lend to viable activities.
