The Hindu Business Line : Andhra Bank loan schemes for purchase of solar equipment

ANDHRA BANK has launched three soft loan schemes for the purchase of solar equipment under the interest subsidy programme of the Union Ministry of Non-conventional Energy Sources (MNES).

The Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, unveiled the schemes at the bank's Foundation Day Celebrations here on Thursday.

Under the AB Surya Sakthi Scheme, the bank will offer loans to women under self-help groups (SHGs) for the purchase of solar cookers, which are available at Rs 1,000 per unit and at Rs 1,500 with electrical backup. This is an interest- free loan, where the MNES subsidises the entire interest. The loan has to be repaid in 10 monthly instalments.

Under a similar scheme, the bank offers loans for the purchase of solar water heaters with costs ranging from Rs 18,000 to Rs 80,000. The device is said to save on electricity bills and ensures supply of trouble free hot water. The saving can be up to Rs 600 per month on electricity bill depending on the tariff and hot water usage.

Andhra Bank offers soft loans for the purchase of solar water heaters with interest rate ranging from two to five per cent. An interest rate of two per cent would be charged for individuals, three per cent for institutions and five per cent for industrial and commercial organisations. Repayment can be made in 60 easy instalments.

The bank has, jointly with Mico Bosch, launched `AB Power Tools' scheme under which loans would be offered for the purchase of power tools. The loans would be offered to all artisans and self-employed persons who are engaged in the field of carpentry and wood works, servicing and repairs of automobiles, electrical and sanitary servicing.

Apart from loans to purchase power tools, the bank also extends need-based working capital under this scheme, according to its Chairman and Managing Director, Mr K. Ramakrishnan. Under the scheme, composite loan of up to a maximum of Rs 1 lakh will be extended with a margin amount of 10 per cent.

The Andhra Bank CMD has urged the State Government to provide capital subsidy under the Rajiv Yuva Shakti Scheme. Explaining the services currently being offered by the bank's Rural Development Institutes towards empowering the rural people with technical skills and entrepreneurial qualities, Mr Ramakrishnan also requested the Government to allot suitable land free of cost for setting up of institutes at Srikakulam, Eluru and Guntur, which are currently functioning in rented premises. The bank runs eight institutes and has so far trained 47,650 people through 1,285 training programmes, he said.

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