Farmers undertaking crop cultivation on lands not owned by them, mainly tenant farmers or oral lessees.In the case of women, the land may be owned/hired or leased either in their own names or in the names of the husband/family.
Formation of Tenant Farmer Groups (TFGs):The eligible farmers will be encouraged to join together as a group on the pattern of SHGs.These groups will be known as TFGs.Such groups can be formed with the active involvement of recognized/approved NGOs/Vas.The agencies involved in the formation of the groups may have to assist the groups in capacity building by giving inputs on credit management techniques, scientific farming practices, judicious use of resources etc.
Objective: To provide crop loans through institutional agencies to tenant farmers/oral lessees and farmers having land without proper records who are not being extended adequate credit support by the agencies due to the inability of the farmers in providing tangible securities and/or producing records regarding their rights on the crops cultivated.
Constitution of Group:
- The membership of a group may not be more than 10-20.Other aspects of TFGs viz. bye-laws, office bearers, opening of accounts with banks, maintenance of registers etc. may be on the same lines as that of SHG.
- Savings and thrift: As in the case of SHG members, all TFG members should also regularly save.The amount may be small, but savings have to be regular and continuous.The TFGs should use the savings/thrift amount for giving loans to their members after a minimum period of 2-3 months.As in the case of SHGs, the purpose, amount rate of interest, schedule of repayment etc. are to be decided by the group itself.
Provision of crop loans to the group/linking of credit with thrift/savings:
- Eligibility of the group for loan, as in the case of SHG, will be linked with the thrift deposits mobilized by the group and the quantum of crop loan to be disbursed to the Group will be to the tune of 1 to 4 times of their savings comprising the group’s balance in SB A/c, amount held as cash with authorised persons, amount internally lent amongst the members, amount received as interest on the loans and any other contribution like grants, donations, etc. received by the Group.
- Credit requirements of the Group will be assessed based on the crops proposed to be cultivated, scale of finance and the area proposed to be brought under cultivation by each member, subject to the ceiling in terms of the ratio of savings and loan amount.A Kisan Credit Card will be issued to the Group for the total eligibility as above. The conditions regarding operations, renewal, NPA norms etc. for KCC will be applicable to the KCC issued in the name of Group.
Security: The group will have to execute documents holding them jointly and severally responsible for repayment of the bank loan.No other security may be insisted upon by banks.
Documentation: Other than the loan application, interse agreement and the loan agreement on the lines of SHG, no other documents are required.
General information: Where there are difficulties in getting certification in respect of the identify and status of landless labourers, share-croppers and oral lessees, branches may accept an affidavit submitted by them giving occupational status (i.e. details of land tilled/crops grown) for loans upto `50,000/-.However, branches may go through the procedures of identification as per KYC norms; appraisal and usual pre-sanction checks before extending finance.