Sponsored by the State Bank of Mysore, this scheduled bank is wholly owned by the government and is quickly expanding to meet its growing customer base and demand. The bank has over 400 branches with 66 being opened in 203 to 2014 alone which speaks volumes of its fast growth, reliability and sound financial products. They have banks across 10 districts and in their quest to provide comprehensive solutions to meet the many financial requirements of their customers, they have adopted a very technological approach with the implementation of facilities such as NEFT RTGS and truncated Cheque clearing system. They have even introduced a mobile ATM kiosk. With over 1500 personnel employed, Kaveri Grameena is fast emerging as one of the strongest rural banks dedicated to improving the standard of life of its customers.
Unlike other loans such as car loans and mortgage loans which have only a particular intended use or used for expenses relating to that purpose, the personal loans offered by Kaveri Grameena Bank have no specific purpose. The amount availed through loans can be used for a multitude of things. Short term goals can easily be achieved or emergencies can easily be met with an influx of additional cash. The loan amounts through personal loans can be used for marriage expenses, whether it is the borrower’s marriage or their children’s. It can be used to consolidate other loans, education purposes, unforeseen expenditures in the form of repairs, so on and so forth. The amount availed through a personal loan can be used in any way deemed fit by the borrower.
The applicants can be employed with private companies, MNC’s or any other established profitable public company for a minimum of 2 years. The applicants can also be employees of the State or Central Government, reputed educational institutes and hospitals, employees of public sector undertaking and also require a minimum tenure of 2 years.
The loan charges an interest rate depending on the check off facility availed. For loans without a check off facility the interest rate charged is 15.50% and with check off facility, the interest rate charged is 15% p.a. There are 4 tenures available in the personal loans. They are 12 months, 24 months, 36 months and 60 months. The maximum loan amount available to a borrower is based on the tenure chosen and the borrower’s net monthly income. If a tenure of 12 months is chosen, the maximum amount available is 4 times the net monthly income. If the tenure chosen is 24 months, the maximum amount available is 8 times the net monthly income. If the tenure chosen is 36 months, the maximum amount available is 10 times the net monthly income. If the tenure chosen is 60 months then the maximum amount available is 12 times the net monthly income. If the borrower is a salaried person who draws a net monthly income of less than Rs.3000 per month with their other sources of income being negligible, the maximum loan amount they are eligible for can range up to 8 times of their net take home pay capped to a maximum of Rs.10, 000 depending upon their capacity to repay the loan.
The Kaveri Grameena Personal loan does not insist on having any margin