Reaching out to the Poorest
Joint Liability Groups (JLGs)
e-PAHEL focuses on poorest of the poor in rural areas with formation of Joint Liability Groups (JLGs). These poor are either landless or they hold very small land holdings. These groups often either are entangled in a debt-trap or are vulnerable to it. In JLGs, endeavors are made to finance these tenant farmers with nationalized banks. The idea is to augment flow of credit to tenant farmers cultivating land either as oral lessees or sharecroppers and small farmers who do not have proper title of their land holding through formation and financing of JLGs. Through JLG mechanism, collateral free loans to target clients are extended to them. It helps in building mutual trust and confidence between banks and tenant farmers. e-PAHEL has already shaped 40 JLGs in Soraon, Prayagraj.
At present, e-PAHEL is implementing around 300 JLGs with the help of NABARD and SBI in Prayagraj.