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Union finance minister Nirmala Sitharaman on Friday said the Centre was committed to providing timely institutional credit to deserving individuals to help them become entrepreneurs and expand their businesses.

India NewsAddressing the Credit Outreach Programme in Narasaraopet, Andhra Pradesh’s Palnadu district, Sitharaman said banks had transformed their lending approach and public confidence in the banking system had improved.

Sitharaman, along with chief minister N Chandrababu Naidu, distributed loans worth ₹3,216 crore to 1,03,246 beneficiaries under various Central schemes. The beneficiaries included 15,000 DWCRA women and 13,355 entrepreneurs.

Jointly organised by the Union finance ministry and public sector banks, the programme aims to improve access to institutional credit for farmers, women, entrepreneurs, students and other eligible beneficiaries.

Sitharaman said Prime Minister Narendra Modi envisions a banking system that reaches people’s doorsteps instead of expecting them to approach banks.

She said the initiative ensures institutional finance for street vendors and small entrepreneurs, with the government acting as guarantor wherever required.

“Providing collateral-free loans at affordable interest rates will significantly benefit small businesses, women entrepreneurs and other economically weaker sections,” she said.

The finance minister said the programme would reduce dependence on private moneylenders charging exorbitant interest rates and that banks were now proactively extending collateral-free loans to eligible beneficiaries based on merit.

“The Narasaraopet Credit Outreach Programme is a clear example of this transformation in the banking system,” she said, adding that institutional credit worth thousands of crores was being extended to help beneficiaries emerge as successful entrepreneurs and business owners.

Naidu said banks should become active partners in Andhra Pradesh’s development rather than functioning merely as lending institutions.

He said institutional credit would improve farmers’ livelihoods, help youth realise their aspirations and enable entrepreneurs to expand their businesses.

“The initiative will significantly strengthen women’s economic empowerment,” he said.

Naidu also announced that Andhra Pradesh would receive ₹7,707 crore from the Centre under the VBG RAMG scheme.

“The Centre is also providing ₹40,000 crore in 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 the state’s 10 lakh DWCRA self-help groups, with savings of ₹29,000 crore, were among the best in the country and had achieved a 99.5% loan repayment rate, reflecting strong financial discipline.

State finance minister Payyavula Keshav, TDP MPs Lavu Srikrishna Devarayalu and Bhashyam Ramakrishna, MLAs and bank officials attended the programme.

Srinivasa Rao is Senior Assistant Editor based out of Hyderabad covering developments in Andhra Pradesh and Telangana . He has over three decades of reporting experience.