Union Finance Minister Nirmala Sitharaman and Andhra Pradesh Chief Minister N. Chandrababu Naidu hand over a loan sanction letter to beneficiaries during the 'Mega Credit Outreach' programme on Friday at Narasaraopet, Palnadu district.
| Photo Credit: PTI
Union Finance Minister Nirmala Sitharaman has observed that ‘phone banking’ used to be the order of the day between 2004 and 2014, during which period influential sections would prevail on the bankers to lend to the chosen ones, by making phone calls, with scant regard for creditworthiness. Banks have since undergone a major transformation in reaching out to the potential customers and sanctioning loans to all the eligible ones, especially for small businesses, without insisting on collateral security, thus curbing the menace of predatory lending. She said it was evident from such Credit Outreach Programs being organised across the country to expand the scope of institutional credit. Distributing loans amounting to ₹3,216 crore under a Mega Credit Outreach Program organised by the UnionMinistry ofFinance and Public Sector Banks herealong with Chief Minister N. Chandrababu Naidu on Friday, Ms. Sitharaman said banks have been going to the people directly and offering loans as part of Prime Minister Narendra Modi’s vision, so that they would not be forced to borrow from private money lenders and microfinance institutions at usurious rates of interest. Change in public perceptionShe pointed out that there has been a noticeable shift in banking culture from those years when a sizable chunk of the eligible borrowers would be deprived of loans due to rigid terms and conditions. Banks have been reaching out to the villages and providing loans to beneficiaries without asking for collateral securities and this approach has changed the public perception (of banks), she stated. Ms. Sitharaman said banks have lent huge amounts to business owners and entrepreneurs after the NDA came to power with the goal of enabling India to emerge as a developed nation by 2047. Banks were earlier struggling with huge Non-Performing Assets and small entrepreneurs often found it difficult to obtain loans. Keeping their financial challenges in view, Mr. Modi introduced schemes under which the government provides guarantees, enabling banks to offer credit more easily to small businesses, she noted.5 lakh to benefit: NaiduAddressing the gathering, Mr. Naidu said ₹3,216 crore is being distributed to 1,03,246 lakh beneficiaries (women, young entrepreneurs, students, artists, street vendors, and Self-Help Groups) in Palnadu district under the Credit Outreach Program and that the initiative will benefit nearly five lakh people.He urged the eligible people to make full use of bank credit for the improvement of their livelihoods and create sustainable economic opportunities, stating that obtaining bank loans is no longer a tedious process. He said with the support of the Central government, the aspirations related to Amaravati, Polavaram and Visakhapatnam Steel Plant were realised and that Andhra Pradesh would receive ₹7,707 crore from the Centre under the VB-G RAM G.Six more dists. to be coveredApart from this, the Centre was extending financial support of ₹40,000 crore to transform Rayalaseema into a horticulture hub. Similar Credit Outreach Programs would soon be conducted in six more districts and thereafter organised once every three months, he added. Andhra Pradesh Finance Minister Payyavula Keshav, Members of Parliament Lavu Sri Krishna Devarayalu and Bhashyam Ramakrishna were among those present. Published - July 17, 2026 07:38 pm IST
