Centre rollS out Rs 3,216 crore loan drive in Palnadu

Earlier, people approached banks for loans. Today, banks are reaching people's doorsteps with credit

Chandababu Naidu AP CM

Metro India News | AMARAVATI

In a major push to deepen financial inclusion and expand access to institutional credit, Andhra Pradesh Chief Minister N. Chandrababu Naidu and Union Finance Minister Nirmala Sitharaman on Friday distributed loans worth Rs 3,216 crore to 1,03,246 beneficiaries at a Mega Credit Outreach Programme in Narasaraopet, describing easy access to finance as a cornerstone of entrepreneurship, women’s empowerment and rural economic growth.

Jointly organised by the Union Ministry of Finance and public sector banks, the programme covered beneficiaries from self-help groups, agriculture, MSMEs, education, housing, transport and renewable energy sectors. Among those who received sanction letters were 15,000 DWCRA women and 13,355 entrepreneurs, underscoring the government's focus on promoting enterprise at the grassroots.

Addressing a large gathering, Chief Minister Chandrababu Naidu said Palnadu should emerge as Andhra Pradesh's next entrepreneurial hub, where every eligible farmer, student, woman and aspiring entrepreneur has access to institutional finance. He stressed that banks have evolved from being mere lending institutions into key development partners driving economic transformation.

"Earlier, people approached banks for loans. Today, banks are reaching people's doorsteps with credit," Naidu observed, adding that institutional finance protects families from exploitative moneylenders while creating opportunities for sustainable livelihoods.

According to the Chief Minister, loans worth ₹2,363 crore were sanctioned to the agriculture sector, ₹325 crore to micro, small and medium enterprises (MSMEs), and ₹624 crore for housing, education, vehicles and solar power.

Naidu used the occasion to highlight the Centre's financial support for Andhra Pradesh, stating that assistance for Amaravati, the Polavaram Project and the Visakhapatnam Steel Plant had strengthened the state's recovery from the fiscal challenges inherited after 2019. He announced that Andhra Pradesh would receive ₹7,707 crore under the VB-G RAM G programme and ₹40,000 crore to develop Rayalaseema into a horticulture hub, a move expected to attract significant private investment.

Praising Union Finance Minister Nirmala Sitharaman, Naidu described her as an inspiration for women and credited her with major banking reforms, including tackling non-performing assets, strengthening public sector banks through consolidation, expanding digital banking, promoting financial inclusion through the Jan Dhan Yojana, and introducing greater transparency in the tax system through GST reforms.

Highlighting the strength of Andhra Pradesh's self-help movement, the Chief Minister said the state's 10 lakh DWCRA groups have accumulated ₹29,000 crore in savings while maintaining an impressive 99.5 per cent loan repayment rate, making them among the country's best-performing women's collectives. He also reiterated the government's "One Family, One Entrepreneur" vision to promote women-led enterprises and employment.

Union Finance Minister Nirmala Sitharaman said the credit outreach programme reflected Prime Minister Narendra Modi's vision of ensuring that banking services reach every village. She recalled that when she assumed office, banks were burdened with high NPAs and small entrepreneurs struggled to secure formal credit. Government-backed guarantee schemes have since enabled banks to lend more confidently to first-generation entrepreneurs and small businesses, she noted.

"Today, banks themselves are identifying beneficiaries and extending credit instead of waiting for people to approach them," Sitharaman said, describing the transformation as a major shift in India's banking ecosystem.

The event also witnessed several Corporate Social Responsibility (CSR) initiatives. Union Bank of India donated an ambulance worth ₹42.16 lakh to the Government Hospital in Piduguralla, while NABARD handed over two mobile demonstration vans worth ₹25 lakh to the District Cooperative Central Bank. A total of 301 bicycles worth ₹17.8 lakh were distributed to girl students, and a regional rural bank donated two battery-operated vehicles to the Tourism Department. The Chief Minister also distributed tricycles to persons with disabilities.

Naidu announced that similar Mega Credit Outreach Programmes would be conducted in six more districts before becoming a quarterly initiative across Andhra Pradesh, further expanding the state's drive towards inclusive growth through accessible institutional finance.