Palnadu Set for ₹3,216-Crore Credit Outreach as Sitharaman Leads Mega Banking Drive

In a major push to expand financial inclusion and improve access to affordable institutional credit, Union Finance and Corporate Affairs Minister Nirmala Sitharaman will launch a ₹3,216-crore Credit Outreach Programme in Palnadu district on Friday. The initiative, one of the largest district-level banking outreach exercises in Andhra Pradesh , will see loan sanction letters distributed to 1,03,246 beneficiaries at Dr. Kodela Siva Prasada Rao Stadium in Narasaraopet , in the presence of Chief Minister N. Chandrababu Naidu .

The programme is part of the Centre's broader effort to bring more people into the formal banking system while ensuring timely access to low-interest institutional credit for farmers, women, self-help groups, MSMEs, street vendors and self-employed individuals . Officials said the sanctioned loans will be released to beneficiaries' bank accounts over the coming weeks through the coordinated efforts of public and private sector banks , Regional Rural Banks , and other financial institutions.

The credit package covers agriculture, micro, small and medium enterprises (MSMEs), retail lending and other priority sectors , with the aim of strengthening rural livelihoods and accelerating economic activity. Agriculture has received the largest allocation, with farmers eligible for crop finance through Kisan Credit Cards (KCCs) . Separate KCC facilities will also be extended to beneficiaries engaged in animal husbandry and fisheries , while Self-Help Groups (SHGs) will receive institutional credit to support income-generating activities.

The outreach also includes loans under flagship schemes such as Pradhan Mantri Mudra Yojana , PM SVANidhi , Prime Minister's Employment Generation Programme (PMEGP) and PM Vishwakarma , encouraging entrepreneurship, business expansion and job creation. Beneficiaries will also have access to housing, vehicle and education loans , along with assistance under the PM Surya Ghar rooftop solar initiative.

Alongside credit distribution, banks will facilitate enrolment under Pradhan Mantri Jan Dhan Yojana , Pradhan Mantri Suraksha Bima Yojana , Pradhan Mantri Jeevan Jyoti Bima Yojana , and the Atal Pension Yojana , expanding banking, insurance and pension coverage among underserved communities.

Narasaraopet MP Lavu Sri Krishna Devarayalu said the initiative would enable thousands of first-time borrowers, particularly small and marginal farmers , women , and members of the SC, ST and BC communities , to enter the formal banking network. Officials believe the large-scale outreach will reduce dependence on informal lenders while promoting entrepreneurship, financial security and inclusive economic growth across Palnadu .