Chaitanya Godavari Grameena Bank – Farm Mechanization Loan

By | March 29, 2011

Government of India, Ministry of Finance announced the amalgamation of Chaitanya Grameena Bank and Godavari Grameena Bank sponsored by Andhra Bank into a single Regional Rural Bank with its Head Office at Guntur, Andhra Pradesh. The bank was thus established on 01.03.2006. The Head Office of the new Bank is situated at Guntur, Andhra Pradesh.

The shares of the bank are distributed between government of India, the sponsor bank that is Andhra Bank and government of Andhra Pradesh. The bank ownership is shared between Government of India, Sponsor Bank and Government of Andhra Pradesh is in the ratio of 50%:35%: 15%.

Purpose: This loan finances procurement of agriculture related equipments. For example purposes like purchase of Tractors with at least three implements, Power Tillers, Paddy Harvesters and other Farm Equipment.


Eligibility: The farmers in East Godavari, Guntur and West Godavari districts.

Margin: At least 15% of the project cost has to be taken by the applicant as margin for the loan.

Security: The equipments purchased with the banks finance have to be hypothecated to the bank as security.


Repayment: The maximum period within which the repayment has to be done is 9 years.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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