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 two-wheelers.
Eligibility: Applicant should be a farmer having agricultural land with sufficient surplus income and having a valid Driving License. The applicant must be in the age group of 18 years and 55 Years.
Quantum of Loan: The quantum of the loan depends on the cost of the vehicle purchased.
Margin: Minimum 25% of the unit cost
Security: The vehicle purchased by the finance of the bank should be hypothecated in favour of the bank, just like any other car loan. This is incorporated by the clause in ‘C’ Book. Collateral security of 150% of total loans is required in case of loans that exceed Rs.50,000/-.