Chandrababu seeks bank support for MSMEs, highlights loan rescheduling savings

Andhra Pradesh Chief Minister N Chandrababu Naidu on Thursday said the state government had saved ₹1,108 crore through the rescheduling of loans and urged bankers to extend stronger support to micro, small and medium enterprises (MSMEs) and other key sectors.

Addressing a meeting with bankers in Amaravati, the Chief Minister stressed that MSMEs should be given top priority as they provide livelihoods and business opportunities to weaker sections. He said the government and the banking sector must act as a strong support system for MSMEs, noting that growth across sectors was possible with adequate encouragement.

Naidu alleged that during the previous YSRCP regime, systems had deteriorated and the government had lost credibility due to heavy borrowing at high interest rates. He said credibility enabled governments to secure loans at lower interest rates.

The Chief Minister stated that loans worth up to Rs 2 lakh crore could potentially be rescheduled in the state, adding that Rs 49,000 crore had already been rescheduled. He also called on bankers to encourage the expansion of natural farming and suggested that district collectors should be invited to future bankers’ meetings.