In 1976, the central government amalgamated Uttar Bihar Kshetriya Gramin Bank and Kosi Kshetriya Gramin Bank (transferor regional rural banks) sponsored by Central Bank of India in the state of Bihar into a single regional rural bank which began to be called as Uttar Bihar Gramin Bank with its head office at Muzaffarpur.
Now area of operation of Uttar Bihar Gramin Bank are the districts of Araria, Katihar, Kishanganj, Darbhanga, East Champaran, Gopalganj, Madhepura, Madhubani, Muzaffarpur, Purnea, Saharsa, Saran, Sheohar, Sitamarhi, Siwan, Supaul, West Champaran and Vaishali in the state of Bihar. Uttar Bihar Gramin Bank sponsored by Central Bank of India, is one of the largest regional rural bank in India in terms of branch network, staff strength and area.
Purpose: This personal loan finances farmers to obtain a tractor.
Eligibility: The applicant requires a minimum of 6 acres of irrigated land. Average use for cultivation purpose should be 1000/600 hours per year.
Repayment: 50% of income generated through this agro mechanization should be adequate enough to meet Bank’s installment and interest. The repayment period is 9 years.
Security: Hypothecation of the vehicle purchased by the loan amount is taken as security.