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 the government of India, the sponsor bank (i.e. Andhra Bank) and the 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 setting up of agri clinics and agri business centers.
Eligibility: Any graduate individually or as a group of normally 5 members can avail this loan for setting up of agri clinics or agri business centers.
Quantum of Loan: The maximum amount that can be granted as loan is Rs.10 lakhs for an individual as personal loan. In case of a group loan the maximum amount that can be granted as loan could be Rs. 50 lakhs.
Security: Hypothecation of the property financed by the bank loan serves as the security.