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 scheme finances the small scale and medium scale enterprises.
Eligibility: Small scale and medium scale enterprises can avail this loan. Micro enterprises, small businesses and road transporter operators can also avail this personal loan scheme subject to certain conditions.
Quantum of Loan: Up to a maximum of Rs. 50 lakhs is granted as loan without collateral security and/or third party guarantee under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Security: Up to Rs. 50 lakhs could be granted as loan without any collateral security and / or third party guarantee under the scheme of CGTMSE. Unlike any other loans like car loan, home loan, this loan scheme does not ask for security for a high quantum of loan.