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 loan finances purchase of land for agricultural purposes.
Eligibility: Small and Marginal farmers i.e., those who would own maximum of 5.00 acres of non-irrigated land or 2.50 Acres of irrigated land including the land proposed to be purchased under the scheme can avail this loan scheme. Share croppers / Tenant farmers can also avail this loan scheme.
The farmers who are already availing credit facility from the bank and are having satisfactory dealings with the bank for the last three years are eligible to avail the loans under this scheme.
Margin: The margin will be a minimum of 25% of the registered value including registration charges.
Repayment: Loan has to be repaid in 7 to 10 years in half yearly / yearly installments including a maximum moratorium period of 24 months.