TIRUCHY: Banks in Tiruchy district disbursed loans to the tune of Rs 30,853.83 crore in 2025-26, surpassing the Annual Credit Plan (ACP) target of Rs 29,155.09 crore. However, very few exporters availed of loan due to which the export credit sector fared poorly with lending of just Rs 5.99 crore against a target of Rs 31.67 crore.
The ACP target for Tamil Nadu is fixed at State Level Banker Committee meeting held in Chennai. According to data shared by officials, agriculture accounted for the lion's share of credit availed at Rs 24,023 crore, followed by MSMEs at Rs 8,520 crore.
Renewable energy recorded a strong performance with banks disbursing Rs 40.05 crore against a target of Rs 3.42 crore. Despite the overall strong performance, stakeholders pointed to structural challenges behind the poor uptake of export credit.
G. Sathish, secretary of the Tiruchy Export Import Federation, said documentation process involved in availing credit is often cumbersome and awareness about such schemes remains limited. "Only a few exporters make use of these facilities.
Banks are also cautious while extending export credit as it involves foreign exchange transactions and associated risks," he said. V Sivaramakrishnan, chairman of CII Tiruchy chapter, stressed the need for greater awareness and institutional support.
"There should be at least one facilitator who can explain the export credit products available across banks. Export volumes from the region are also comparatively low, which affects demand for such credit," he said.
Further, Rajappa Rajkumar, president of the Tamil Nadu Boilers Association, said several MSMEs face difficulties in accessing finance under Priority Sector Lending (PSL).
"Many BHEL-dependent industries struggled with bad loans over the past decade and are still unable to secure fresh funding. A significant share of MSME lending is now going to sectors such as food processing and services, while traditional manufacturing units continue to face hurdles in obtaining finance," he said.
The ACP target for 2026-27 has been fixed at Rs 33,392 crore, an increase of over Rs 4,200 crore from the last year. A senior banking official associated with the Lead Bank Scheme said the export credit target for 2026-27 is yet to be finalised.
