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 bank ownership is shared between Government of India, Sponsor Bank and Government of Andhra Pradesh in the ratio of 50%:35%: 15%.
Purpose: This home loan finances repair, renovation or extension of an existing house.
Eligibility: Any individual with sufficient repayment capacity can obtain this loan.
Quantum of Loan: The maximum amount granted as loan for repair, renovation or extension of house is Rs. 1 lakh in a semi urban area and Rs. 2 lakhs in an urban area. This is provide that the applicant come under priority sector, and that the bank is satisfied with the estimates submitted by the applicant.
Security: Collateral security equivalent to 150% of the loan value is required. Security may be either immovable property like house, agricultural land or movable properties like NSCs, KVPs, LIC policy, gold ornaments etc.
Repayment: The repayment period shall not exceed 10 years.