Union Finance Minister Nirmala Sitharaman on Friday said that the Center is committed to providing timely institutional credit to deserving individuals to help them become entrepreneurs and expand their businesses.
Addressing a credit awareness program in Narasaraopet, Palnadu district of Andhra Pradesh, Sitharaman said banks have transformed their approach to lending and public confidence in the banking system has improved.
Sitharaman along with Chief Minister N Chandrababu Naidu distributed loans worth $3,216 crore to 1,03,246 beneficiaries under various central schemes. Beneficiaries included 15,000 women from DWCRA and 13,355 entrepreneurs.
The programme, jointly organized by the Union Finance Ministry and public sector banks, aims to improve access to institutional credit for farmers, women, entrepreneurs, students and other eligible beneficiaries.
Prime Minister Narendra Modi envisions a banking system that reaches people’s doorsteps instead of expecting them to go to banks, Sitharaman said.
She said that the initiative guarantees institutional funding for street vendors and small entrepreneurs, with the government acting as a guarantor where necessary.
“Providing collateral-free loans at affordable interest rates will greatly benefit small businesses, women entrepreneurs and other economically weaker sectors,” she said.
The Finance Minister said the program will reduce dependence on private money lenders who charge exorbitant interest rates, and that banks are now proactively offering collateral-free loans to eligible beneficiaries on the basis of merit.
“Narasaraopet Credit Awareness Program is a clear example of this transformation in the banking system,” she said, adding that institutional credit worth thousands of crores of rupees has been provided to help beneficiaries emerge as successful entrepreneurs and business owners.
Naidu said that banks should become active partners in the development of Andhra Pradesh instead of acting only as lending institutions.
He said institutional credit would improve the livelihood of farmers, help youth realize their aspirations and enable entrepreneurs to expand their businesses.
“The initiative will significantly enhance women’s economic empowerment,” he said.
Naidu also announced that Andhra Pradesh will receive $7,707 crore from the Center under the VBG RAMG scheme.
“The center also offers $Rs 40,000 crore of financial support to transform the Rayalaseema region into a horticulture hub, with additional investments expected from the private sector, he said.
The Chief Minister said that the SHGs numbering 10 lakh DWCRA in the state, with savings of $29,000 crore, was among the best in the country and achieved a loan repayment rate of 99.5%, reflecting strong financial discipline.
State Finance Minister Baiyavula Keshav, TDP MPs Lavu Srikrishna Devarayalu and Pashyam Ramakrishna, local bank officials and bank officials were present at the programme.
