HYDERABAD: State Bank of India (SBI) and National Bank for Agriculture and Rural Development (NABARD) have joined hands for an initiative to provide collateral free credit through Joint Liability Groups (JLGs) in the state.
SBI and Nabard have signed a Memorandum of Understanding (MoU) with seven NGOs from Nizamabad, Medak and Warangal districts for promotion and credit linkage of 2,000 JLGs during the current year. The tripartite MoU was signed by SBI chief general manager J Swaminathan and Nabard chief general manager P Radhakrishnan here on Tuesday.
Under the agreement, Nabard will provide assistance to NGOs for formation, nurturing and hand-holding of JLGs of oral lessees, sharecroppers and tenant farmers and SBI will provide collateral free credit support to the activity groups promoted by the NGOs, according to a release from SBI.