VIJAYAWADA: Besides expanding business and improving services, Andhra Bank has decided to impart training to artisans and supply tools to them for minimum margin money.

The Andhra Bank (AB) Power Tool scheme, launched in January this year, is an attempt to address the problem of unemployment among youth. The bank has signed a memorandum of understanding (MoU) with a Bangalore-based tools manufacturing company, Mico Bosch, for the supply of tools.

On an experimental basis, the bank has supplied tools like drilling and cutting machines, saws, servicing kits, nozzle testers and centring material to 14 artisans comprising electricians, plumbers, carpenters and auto mechanics.

Asset distribution

A team of Mico Bosch was invited to demonstrate the use of its latest hazard-free tools at an Andhra Pradesh private electricians' meeting in January. "The meeting served the dual purpose of informing people about our plans and identifying beneficiaries of the scheme," says N. Patel, Deputy General Manager of the bank.

The assets were delivered at a camp organised at the Autonagar branch of the bank. The distribution was preceded by a pre-sanction inspection.

"We want to make sure if the applicants are actually involved in the activity and ascertain the proof of residence," says M. Vijender, bank's Autonagar branch manager.

Eligibility criteria

There is no age bar for the beneficiaries. Each of them is given a loan of Rs. 35,000 to Rs. 1 lakh. The beneficiary has to invest margin money of 10 per cent, while the bank funds the remaining 90 per cent of the cost of the tools.

No collateral security or third party guarantee is required. An interest of 10.5 per cent is charged and the loan should be repaid in 60 months.

Good response

Encouraged by the response, the bank has identified another 50 beneficiaries who will be given tools worth nearly Rs. 50 lakhs at a grand function at Machilipatnam next week.

"We want to engage in more accountability to wider sections of society by developing and nurturing core values," says Mr. Patel.

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