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Andhra Bank Pattabhi Sitaramayya Scheme

Pattabhi Sitaramayya Scheme

Andhra Bank Pattabhi Sitaramayya Scheme

The Andhra Bank has launched a loan scheme entitled “Pattabhi Sitaramayya Self Business Group (PS-SBG) Scheme” to promote women’s entrepreneurship development.  The bank aims to set a path towards the economic empowerment of women by providing business loans to meet the requirement of working capital or for business expansion.  In this article, we look at the Pattabhi Sitaramayya — Self Business Group Scheme in detail.

Objective of the Scheme

The primary objective of the PS-SBG scheme is to empower women by making them self-sustainable and self-reliant through appropriate training provided by the Andhra Bank Rural Self Employment Training Institutes (ABRSETIs) or any other training institutes. Apart from the training and counselling, it provides the delivery of credit poses the problem for the needy women.

Eligibility Criteria

To apply for the PS-SBG Scheme, the Self Help Groups (SHGs) which are in actual presence with competent dealings for more than 5 years are eligible. The SHGs should have completed 3 Credit rotations with stable repayment record. These sectors have to take up common income generating activity or multiple income-generating activities at the group level or individual level, that is technically possible and economically viable to apply for this scheme.

Documents Required

The required documents/records to be submitted while applying for the Pattabhi Sitaramayya — Self Business Group scheme are listed below:

  • Identity Proof: Aadhar, PAN Card, Driving License, Voter Identity Card, etc.
  • Address Proof: Aadhar Card, PAN Card, Valid Passport, Utility bill, Property tax bill, etc.
  • Bank account details
  • Sources of funding details
  • If the applicants have any work experience, then documents proving the same are necessary.
  • Passport size photo of the women applicant

Purpose of the Scheme

The purpose of this PS-SBG scheme is to promote income generating and productive activities under the Agriculture and allied activities (other than crop production) and SME activities.

Quantum of Loan

Under this scheme, the bank grants financial assistance of term loan at 90% of the term investment proposed and the working capital loan (need-based) 90% of the recurring expenditure to be acquired in the project. Both working capital loan and term loan put together should be subjected to a maximum amount of Rs. 25 lakhs.

Margin Money

Margin money would be 10% of the project cost.

Rate of Interest

The applicable interest rate is calculated as follows:

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

Repayment Period

The period of repayment for term loan would be the maximum of 60 to 72 months in instalments basis depending on cash flow with a gestation period of 3 to 6 months. The validity of the Cash Credit is for one year with annual review or renewal.

Primary Security and Collateral Security

Hypothecation of assets formed out of bank loan, and there is no Collateral Security under this scheme.


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

Processing Fees

  • Limit up to Rs. 25000/- per member: Nil
  • Limit that is above Rs. 25000/-  per member would be 0.50% of the sanctioned amount.

Terms and Conditions of the Training & Counseling

  • Proper training must be imparted to the majority of SBG members by the training institute before financing them under the scheme.
  • The SBG loan is to be funded in addition to the existing Self Help Group (SHG) loan within the overall limit of Rs. 25 lakhs.
  • The Minimum corpus of the group should not be less than 10% of the loan amount at any point of time.
  • The Assets from bank finance would be covered under the insurance policy.
  • The loan will be sanctioned only after ensuring that there is no concentration of the same type of activities or businesses in a cluster.
  • All necessary approvals and permissions for the activities taken up are to be obtained.

Offline Application Procedure

To apply for the Pattabhi Sitaramayya — Self Business Group Scheme (PS-SBG), the applicant has to follow the below procedure:

Step 1: The applicant will have to approach the nearest bank branch to apply for the scheme.

Step 2: The applicant must fill out the PS-SBG Scheme application form with all the requested details and have to attach the specified documents as required. The application form can be downloaded from the official website of Andhra Bank.

Step 3: After completing the application form, submit it to the concerned bank official.

Step 4: Upon submission, the verification process will be done by the bank official.

Step 5: Then, the applicant will be provided with an acknowledgement slip for further reference.