Amaravati, June 20: The annual loan target for Andhra Pradesh for the fiscal year 2026-27 has been set at ₹8.10 lakh crore, representing a 22.7% increase from last year’s target of ₹6.60 lakh crore.
This loan plan was approved during a meeting of the State Level Bankers Committee (SLBC) chaired by Chief Minister Chandrababu Naidu.
According to an official statement, out of the total ₹8.10 lakh crore, ₹5.40 lakh crore is earmarked for priority sectors, while ₹2.70 lakh crore is allocated for other areas.
The agricultural sector has been allocated ₹3.60 lakh crore, which includes ₹2 lakh crore specifically for crop loans. Additionally, banks have proposed financial assistance of ₹10,693 crore for agricultural mechanization.
For the Micro, Small, and Medium Enterprises (MSME) sector, a provision of ₹1.55 lakh crore has been made, with ₹70,000 crore designated for micro enterprises. The plan also includes ₹11,500 crore for housing loans and ₹2,500 crore for education loans.
During the fiscal year 2025-26, banks disbursed ₹3,86,249 crore in loans to the agricultural sector, ₹1,17,357 crore to the MSME sector, and a total of ₹5,19,693 crore to priority sectors.
Bankers noted that loan distribution in Andhra Pradesh is 137% higher compared to other southern states.
The Chief Minister stated that the target for economic growth this year is set at 15%, and banks must provide the necessary financial support to achieve this goal.
In collaboration with Ashok Pandey, Managing Director and CEO of Union Bank of India, the Chief Minister launched the annual loan plan for 2026-27.
During the meeting, he emphasized that banks should generously provide loans to promote the MSME sector. He also mentioned that the central government is working to simplify and automate the loan approval process.
The state government is promoting startups and innovation through the Ratan Tata Innovation Hub, urging banks to support eligible entrepreneurs.
The Chief Minister proposed forming a joint committee of bankers and officials to monitor loan distribution and non-performing assets (NPAs).
He stressed the importance of fully utilizing central-sponsored schemes and highlighted the government’s plan to foster a large number of entrepreneurs under the ‘One Family, One Entrepreneur’ initiative.
He also appealed for increased financial support for the fisheries and aquaculture sector, noting the immense potential for asset creation in this area. Proposals for the purchase of 200 mechanized fishing boats under the subsidy scheme have already been submitted.
Additionally, the state government is ready to provide an extra 4% interest subsidy on education loans in coordination with the Prime Minister Vidyalakshmi Scheme, aiming to offer more opportunities for students pursuing higher education domestically and abroad.
Expressing concern over cyber fraud, the Chief Minister advised banks to develop special standard operating procedures (SOPs) to prevent digital fraud, cyber scams, and other financial crimes.
He urged banks to act swiftly to protect victims from financial losses due to delays in identifying and apprehending criminals.
The Chief Minister noted that a significant number of people in Andhra Pradesh have fallen victim to such cyber fraud in the past three months. Banks should analyze these crimes, implement effective SOPs, and conduct extensive public awareness campaigns.
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