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 small road and water transporter operators to buy new vehicles.
Eligibility: Small Road and Water Transport Operators owning a fleet of vehicles, not exceeding 10 vehicles, including the one proposed to be financed are eligible for this personal loan. Only new vehicles will be financed under this loan scheme.
Quantum of Loan: The quantum of loan depends on the vehicle that is proposed to be purchased by the banks finance.
Security: The hypothecation of the property obtained by the banks finance will be required as security.
Repayment: The repayment has to be done in 36 to 84 Equated Monthly Installments depending upon the repaying capacity of the borrowers.