The State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (Nabard) jointly signed an MoU here on Wednesday with six NGOs for promotion of around 5,000 Joint Liability Groups (JLGs) in the State.
The MoU intends to support the promotion of quality JLGs, which can be considered for financing in a hassle-free manner by the SBI under agriculture and allied sector through farm sector advances, term loans or allied activities. This mode of financing would also minimise the risks in the loan portfolio.
SBI CGM Praveena Kala said the innovative nature of the social collateral, used under JLG mode of financing, would help achieve the goal of a 100-per cent coverage of the marginal and tenant farmers of the State under institutional finance in the shortest possible time. Nabard CGM KC Panigrahi said 25 lakh JLGs have been credit-linked by the banks throughout the country. He also emphasised that the public sector banks like the SBI need to play a major role in future.
The six NGOs shared their experiences in different fields in rural Odisha and were sanguine to serve in a better way with support from the SBI and the Nabard.