Chaitanya Godavari Grameena Bank MSME Loans
Overview about Chaitanya Godavari Grameena Bank MSME Sector Loans
Chaitanya Godavari Grameena Bank was an amalgamation of Chaitanya Grameena Bank and Godavari Grameena Bank which was sponsored by Andhra Bank into a single Regional Rural Bank. The head office is at Guntur, Andhra Pradesh. Government of India is 50% shareholder, sponsor bank has 35% shares and Government of Andhra Pradesh has 15% share.
Chaitanya Godavari Grameena Bank is committed to offer financial service for the rural population. It offers a range of products to the MSME sector. Loans are offered to small and medium enterprises, small road and water transport operators, retail traders, small businesses and professional and self-employed persons.
Purpose of Chaitanya Godavari Grameena Bank MSME SectorLoan
Chaitanya Godavari Grameena Bank offers the MSME Sector loan to the small and medium enterprises, small road and water transport operators, retail traders, small businesses and professional and self-employed persons so that they can avail advances with ease and help them expand, to acquire assets, meet the working capital requirement etc.
Eligibility criteria for availing MSME Sector Loan
Chaitanya Godavari Grameena Bank offers MSME Sector loan to:
- Micro enterprises
- Small business
- Road transport operators
- Partnership firms
- Consumer co-operative stores
- Partnership firms offering services other than professional services such as hotels, cycle and taxi, tea stall, Photostat, PCO, pickle making, saloons, mike set, kite making, etc.
- Professionals like doctors, lawyers, Chartered Accountants, engineers, architects, tax consultants, magicians, researchers, etc.
Features and benefits of Chaitanya Godavari Grameena Bank MSME Sector Loan
The features of MSME Sector loan from Chaitanya Godavari Grameena Bank are as follows:
- Small and Medium enterprises:
- Bank will extend loan through a ‘Single Window’ system at competitive interest rate.
- Loans up to Rs.50 lakh is allowed provided collateral security is offered.
- Loans are available without collateral security as well.
- Small road and water transport operators:
- The operators must not own more than 10 vehicles and this includes the one that is proposed to be financed.
- Only one vehicle can be financed.
- The repayment term is 36 – 84 EMIs which depends on the borrower's repayment capacity.
- Retail traders:
- Retail traders that can avail this loan must deal in essential commodities.
- Consumer co-operative stores other than private retail traders can apply.
- The credit limit must not exceed Rs.10 lakhs.
- The loan must be taken to acquire office furniture and to meet the working capital requirement.
- The repayment tenure is 36 – 48 months depending on the borrower’s repayment capacity.
- Small Business:
- The cost of the equipment used for the purpose of small business that offers service must not exceed Rs.20 lakhs.
- The eligible persons are individuals or partnership firms that run a hotel, cycle and taxi, tea stall, etc.
- The repayment term is 36 – 48 months this is based on the repayment capacity of the borrower.
- Professional and self-employed persons:
- The professionals can buy equipment, repair or renovate the existing equipment, repair business premises, purchase tools or to meet the working capital requirement.
- The borrowing limit must not exceed Rs.10 lakhs and not exceed Rs.2 lakhs towards working capital requirement.
- Doctors, lawyers, Chartered Accountants, engineers, architects, tax consultants, magicians, researchers, surveyors, construction workers, management consultant or a person who is trained in any other form of art or craft can avail loan under this section.
- The maximum loan that a qualified medical practitioner can avail to set up practice in urban and rural areas is up to Rs.15 lakh. The working capital requirement he can avail is up to Rs.3 lakh.
- The repayment term is 36 – 72 months with a gestation period that does not exceed 3 months.
Documents required for Chaitanya Godavari Grameena Bank MSME Sector Loan
While applying for the MSME Sector Loan from Chaitanya Godavari Grameena Bank, you will have to submit the following documents:
- Pan Card
- Identity Proof
- Residence Proof
- Proof of business existence
- Last 2 years Income Tax Returns
- Latest 1 year Bank statement, this includes current and savings account.
- 2 passport sized photographs
- Other documents as expressed under the scheme