CM Chandrababu, Nirmala Sitharaman Distribute ₹3,216 Crore Loans to 1.03 Lakh Beneficiaries in AP

In a major push towards financial inclusion, rural development and economic recovery, Andhra Pradesh Chief Minister N. Chandrababu Naidu and Union Finance Minister Nirmala Sitharaman on Friday distributed loans worth ₹3,216 crore to 1,03,246 beneficiaries under various Central government schemes during a large-scale Credit Outreach Programme in Narasaraopet, Palnadu district.

Addressing a public gathering, Sitharaman said Prime Minister Narendra Modi's vision was to ensure that banking services reach every citizen, particularly farmers, agricultural labourers, fishermen, artisans, street vendors and small entrepreneurs. She noted that before 2014, many small traders and self-employed individuals were forced to depend on private moneylenders charging exorbitant interest rates. Today, she said, the government is providing affordable loans, often without collateral, enabling people to expand their livelihoods and businesses.

The Union Minister observed that the banking sector had undergone significant reforms under the NDA government, allowing banks to actively reach out to citizens rather than waiting for applicants to approach branches. She also criticised the lending practices followed during the UPA era, alleging that politically influenced lending had contributed to rising non-performing assets. Beneficiaries, she said, should utilise the loans productively to improve their incomes and strengthen local economies.

Naidu said the primary objective of welfare and development programmes was to improve the quality of life of ordinary citizens . Institutional credit, he noted, protects farmers, women and youth from falling into debt traps created by private lenders. He praised Sitharaman's role in strengthening the banking system, curbing bad loans, expanding digital banking and implementing GST reforms.

Providing a sector-wise breakup, the Chief Minister said ₹2,363 crore had been sanctioned for agriculture, ₹325 crore for micro, small and medium enterprises, and ₹624 crore for housing, education, vehicle purchases and solar energy projects.

Naidu also highlighted the Centre's support for Andhra Pradesh's economic revival, stating that assistance for Amaravati , the Polavaram Project and the Visakhapatnam Steel Plant had helped the state recover from financial difficulties. He said restructuring high-interest borrowings had generated savings of ₹1,538 crore for the state.

The Chief Minister further announced that Andhra Pradesh would receive ₹7,707 crore under the VBG programme and attract investments worth ₹40,000 crore to develop Rayalaseema as a horticulture hub . He also highlighted the strength of the state's 10 lakh self-help groups , which collectively hold savings of ₹29,000 crore and maintain a remarkable 99.5 per cent loan repayment rate . Reiterating his vision for the future, Naidu said the government aims to build a prosperous, healthy and happy Andhra Pradesh by 2047 .

Earlier, Naidu and Sitharaman jointly flagged off ambulances provided by Union Bank of India under its CSR initiative and distributed bicycles to schoolgirls. Sitharaman was welcomed at the Chief Minister's residence by Naidu and IT and Electronics Minister Nara Lokesh before attending the programme.