Union Finance Minister Nirmala Sitharaman addresses the gathering during a loan distribution programme under Central government schemes, in Palnadu district. (Handout via PTI Photo)(PTI07_17_2026_000212B) | Photo Credit: -

Union Finance Minister Nirmala Sitharaman on Friday said the Centre’s objective was to ensure the reach of banking services across every village and facilitate easier access for small entrepreneurs to institutional credit.

Speaking at a mega credit outreach programme in Narasaraopet in Andhra Pradesh, Sitharaman said public-sector banks were increasingly reaching out to entrepreneurs and extending loans at their doorstep.

Recalling the challenges in the banking system when she assumed office, the Finance Minister said banks were burdened with high levels of non-performing assets, while small entrepreneurs struggled to secure loans. Recognising these constraints, Prime Minister Narendra Modi introduced credit schemes backed by government guarantees, enabling banks to lend more readily to small businesses, she said.

Sitharaman and Andhra Pradesh Chief Minister N Chandrababu Naidu distributed loan sanction letters and cheques worth ₹3,216 crore to 1,03,246 beneficiaries in Palnadu district. The beneficiaries included 15,000 women belonging to Development of Women and Children in Rural Areas (DWCRA) groups and 13,355 entrepreneurs.

Addressing the gathering, Naidu said Palnadu should emerge as a hub for entrepreneurs. The State government’s objective was to ensure access to credit for every eligible farmer, student, self-help group member and entrepreneur, he said.

“Banks are not merely lending institutions but key partners in the State’s development,” Naidu said. Similar credit outreach programmes would be conducted in six more districts and subsequently held once every three months, he added.

Highlighting the performance of women’s self-help groups, Naidu said Andhra Pradesh’s 10 lakh DWCRA groups had accumulated savings of ₹29,000 crore and achieved a loan repayment rate of 99.5 per cent.

The Chief Minister said the Centre’s support was helping Andhra Pradesh take forward projects and initiatives related to Amaravati, Polavaram and the Visakhapatnam Steel Plant. The State would receive ₹7,707 crore from the Centre under the VB-G RAM G programme, while financial support of ₹40,000 crore was being extended to develop Rayalaseema as a horticulture hub, he said, according to a release.

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