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 aims at financing self help groups, village organizations and NGOs.
Eligibility: This loan is granted to SHGs and to VOs /NGOs for on-lending to SHGs /members of SHGs / discreet individuals or small groups which are in the process of forming a SHGs are eligible for this loan. Only groups rated “A” will be financed by this scheme.
Quantum of Loan: The maximum amount that can be granted as loan is Rs. 5 lakhs per group. The ratio of the loan amount to the Corpus of the group shall not be more than 5.
Repayment: The repayment has to be done within a period of 36 months to 60 months equated monthly installments.