Andhra Bank
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PATTABHI SITARAMAYYA SELF BUSINESS GROUP SCHEME
 Objective

To empower women by making them self-sustainable and self-reliant by providing appropriate training through Andhra Bank Rural Self Employment Training Institutes (ABRSETIs) or any other training institutes. The following districts have been identified in Andhra Pradesh and Telangana states for implementation of the pilot scheme.

S. No Name of the District State
1 East Godavari Andhra Pradesh
2 Krishna Andhra Pradesh
3 Krishna Andhra Pradesh
4 Srikakulam Andhra Pradesh
5 Srikakulam Andhra Pradesh
6 SPSR Nellore Andhra Pradesh
7 Guntur Andhra Pradesh
8 West Godavari Andhra Pradesh
9 Chittor Andhra Pradesh
10 Siddipet Telangana
11 Ranga Reddy Telangana
  Eligibility

Self Help Groups (SHGs) which are in active existence with satisfactory dealings for more than 5 Years and completed 3 Credit rotations with good repayment record are eligible. SHGs have to take up common income generating activity/multiple income generating activities at group level or individual level, which are technically feasible and economically viable.

  Purpose

Income generating / productive activities under Agriculture & allied activities (other than crop production) & SME activities.

  Loan Amount

Term loan: 90% of the term investment proposed.
Working capital loan (need based) : 90% of the recurring expenditure to be incurred in the project.

Both term loan and working capital loan put together subject to a maximum limit of Rs. 25.00 lakh.

  Margin

10% of the project cost.

  Rate of interest

Cash Credit:MCLR + 3.50
Term loan:MCLR + 3.50 + 0.50

  Repayment

Term loan:Repayable in 60-72 monthly instalments depending on cash flow with a gestation period of 3-6 months.
Cash Credit:Valid for one year with annual review/ renewal.

  Primary Security

Hypothecation of assets created out of bank loan.

  Collateral Security

Nil

  Guarantee

Group Guarantee – All the individual Self Business Group (SBG) members are jointly and severally liable.

  Processing charges

Upto limit of Rs.25000/- per member:Nil
Limit above Rs.25000/- per member:0.50% of the sanctioned limit

  Terms & Conditions
  1. Proper training shall be imparted to majority of SBG members from our/other nearest training institute before financing them under the scheme.
  2. The SBG loan is to be financed in addition to the existing Self Help Group (SHG) loan within overall exposure limit of Rs. 25.00 lakhs.
  3. Minimum corpus of the group shall not be less than 10% of the loan amount at any point of time.
  4. Assets created out of our Bank finance shall be covered comprehensively under Insurance.
  5. Loan will be sanctioned after ensuring that there is no concentration of same type of activities/ businesses are not there in a cluster.
  6. All necessary approvals/Permissions pertaining to the activities taken up are to be obtained.
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