Andhra Pradesh’s annual credit plan target for 2026‑27 has been fixed at Rs 8.10 lakh crore, a 22.7 per cent increase over the previous year’s Rs 6.6 lakh crore.The credit plan was approved at the State‑Level Bankers’ Committee (SLBC) meeting presided over by Chief Minister N. Chandrababu Naidu.
According to an official release, Rs 5.40 lakh crore has been earmarked for priority sectors, including agriculture, while Rs 2.70 lakh crore has been allocated to other sectors. The plan includes Rs 3.60 lakh crore for the agriculture sector, including Rs 2 lakh crore towards crop loans.
Banks have also proposed financial assistance of Rs 10,693 crore for agricultural mechanisation. The MSME sector has been allocated Rs 1.55 lakh crore, including Rs 70,000 crore for micro‑enterprises. Housing loans worth Rs 11,500 crore and education loans worth Rs 2,500 crore have also been planned.
Banks reported extending loans worth Rs 3,86,249 crore to the agriculture sector in 2025‑26. They informed the Chief Minister that loans worth Rs 1,17,357 crore were given to the MSME sector and Rs 5,19,693 crore to the priority sector.
Bankers noted that credit disbursement in Andhra Pradesh is 137 per cent higher than in other South Indian states.The Chief Minister said a target of 15 per cent growth was set for this year, and banks must provide the necessary financial support to achieve it.
The Chief Minister, along with Union Bank of India Managing Director and CEO Ashok Pandey, formally released the Andhra Pradesh Annual Credit Plan for 2026‑27.Addressing the bankers, the Chief Minister said banks should encourage MSMEs by providing liberal credit. He added that the Union Government is also advocating an auto‑pilot mode for loan approvals.
He said that through the Ratan Tata Innovation Hub, the state government is promoting startups and innovation, and banks should support deserving entrepreneurs. He proposed the formation of a committee comprising bankers and officials to monitor credit disbursement and NPAs.
He also emphasised full utilisation of Centrally Sponsored Schemes and highlighted the Government’s ambition to create a large number of entrepreneurs through the “One Family, One Entrepreneur” initiative.The Chief Minister urged banks to extend greater support to the aquaculture sector, which has significant wealth‑generation potential.
He noted that proposals have already been submitted for the purchase of 200 mechanised fishing boats under subsidy schemes.The Chief Minister announced that the State Government is prepared to provide an additional 4 per cent interest subsidy on education loans in convergence with the PM Vidyanidhi Scheme.
The objective is to facilitate higher education opportunities for students pursuing studies in India and abroad.Highlighting concerns over cyber frauds, Chief Minister Naidu advised banks to formulate a special Standard Operating Procedure (SOP) to prevent digital arrests, cyber frauds and other financial crimes.
He said banks must respond swiftly to protect victims from financial losses in digital fraud cases. Delays in identifying and apprehending criminals are resulting in substantial losses. Banks should establish Central Transaction Monitoring Cells to detect and prevent financial fraud. Even educated individuals are losing significant amounts of money in digital arrest scams.
A large number of people in Andhra Pradesh have fallen victim to such frauds in the last three months. Banks should analyse these crimes and implement a robust SOP. Extensive public awareness campaigns must also be conducted.