Chaitanya Godavari Grameena Bank – Produce Loans

By | March 29, 2011

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 saving the farmers from distress sale of their produces by financing them on pledging of their produce. Farmer can keep his produce in his farmhouse or a room attached to his house of first class or 2nd class construction.


Eligibility: Farmers having proof of land holding and basing on average yield of the crop can avail this loan. Produce loans against Central/State warehousing receipts and Market Yard receipts are also permitted.


Quantum of Loan: The quantum of loan is decided based on the pledged produce.


Security: The farm products are pledged to the bank as security for this personal loan ,loan,


Repayment: The maximum period within which the loan has to be repaid is 1 year.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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