Naidu urges banks to expand loans for agriculture, MSMEs, startups

Vijayawada: Chief minister N Chandrababu Naidu on Friday said, "No one in the state should have to borrow from private lenders. Banks must ensure access to loans for all categories, including agriculture, MSMEs and start-ups." He chaired the 233rd and 234th State-Level Bankers' Committee (SLBC) meetings at the secretariat here. He urged the bankers to give higher credit to the MSMEs run by BC, SC and ST communities for inclusive economic progress.During the review on annual credit plan implementation for 2025-26, the bankers apprised the chief minister that Rs 2.96 lakh crore in loans were issued so far to agriculture and allied sectors, including Rs 1490 crore to tenant farmers. They also said MSMEs received Rs 95714 crore in loans.Terming job creation as the top priority for govt, Naidu sought enhanced support for the MSME sector, which has huge potential for job creation. If the MSMEs are strengthened, the economy will get a boost, he said, adding that the state govt is moving ahead with the ‘One Family – One Entrepreneur (OFOE)' approach, with a focus on strengthening the services sector. He also stressed funding PPP projects, as the centre is also ready to provide viability gap funding (VGF) for PPP projects.He asked banks to increase lending to the renewable energy sector, noting that both the centre and the state are focusing on it and that DISCOMs are providing counter guarantees. He said the govt is aimed at developing Amaravati as a hub for finance-sector institutions and asked the bakers to expedite the works for which foundation stones were laid recently.Naidu also highlighted the need for strengthening Farmer Producer Organisations (FPOs) on the lines of DWCRA groups. He urged bankers to consider waiving or reducing 15 types of charges currently being imposed on DWCRA accounts. He also urged bankers to resolve technical issues in giving loans to TIDCO houses, which were neglected during the previous regime.As the land records are being cleansed and pattadar passbooks with QR codes are being issued, Naidu said there should not be any problem with a lack of proper records while issuing loans. He asked bankers to consider using QR codes for bank accounts as well.The meeting also discussed support for start-ups. Bankers informed the Chief minister that various banks are assisting entrepreneurs through the Ratan Tata Innovation Hub (RTIH). While Union Bank is supporting the Hub's Amaravati headquarters, SBI, Bank of Baroda, Canara Bank, Punjab National Bank, Indian Bank and HDFC are supporting the spokes at Rajahmundry, Anantapur, Visakhapatnam, Tirupati and Vijayawada, respectively.ministers Payyavula Keshav and Kondapalli Srinivas, Chief Secretary K Vijayanand, the MD of Union Bank, RBI regional officials, NABARD representatives, directors of the National SC/ST Commission and officials from various banks attended the meeting. Naidu directed that district collectors be invited to future SLBC meetings.Naidu takes on YSRCP in SLBC meeting- State's credibility took a hit during the YSRCP regime- Huge loans were raised at high interest rates in the previous administration- NDA govt is working on restoring brand AP and improving the credibility of the state - An estimated Rs 2 lakh crore debts will be rescheduled to lower interest rates- State govt saved Rs 1108 crore from rescheduling of Rs 49000 crore so far- Beneficiaries of TIDCO houses faced issues because the previous govt did not implement its promise