Krishna Grameena Bank (KGB) is a Regional Rural Bank established in terms of provisions of Regional Rural Banks Act 1976 & is sponsored by State Bank of India. The shareholders of the Bank are Government of India (50%), State Bank of India (35%) and Government of Karnataka (15 %).
The Bank is established on 01-12-1978. The area of operation of the Bank comprises three districts namely Gulbarga, Bidar and Yadgir. The present Branch network is 119, of which 94 branches functioning in rural area, catering to the needs of farming community, rural artisans and other rural mass. Krishna Grameena Bank is pioneer in promoting & extending financial assistance to Self Help Groups (SHGs). It offers home loan, personal loan, vehicle loan, agricultural loan, business loan etc.
Purpose – For all eligible trading and small business activity
Eligibility – All persons engaged in trading activity and petty business;
Quantum of Loan – Need base advance.
Disbursement pattern– Cash credit account disbursement for replenishment of stocks
Security – Up to Rs.25,000/- : Hypothecation of stock in trade; Rs.25000/- to Rs.50000/-: Hypothecation of stock in trade + third party guarantee.
Above Rs.50, 000/- : Hypothecation of stock + third party guarantee + registered/equitable mortgage on immovable property.
Margin – 10-15%
Repayment – Cash credit account repayable on demand;
General Cash Credit: Maximum 18 monthly installments
Documents Required – Receipts and bills; stock statement for loan limit of Rs.1 lakh and above; License from competent authority.