Visakhapatnam, June 23 (KNN) In order to increase lending to the MSME sector and others, the Andhra Pradesh State Financial Corporation (APSFC) has cut down the interest rates.

According to a media report, the Managing Director of APSFC, WVR Murthy, has said that APSFC has recently cut interest rates and is focusing on extending loans to the MSMEs, the service sector and commercial and residential projects.

He said this during the launch of a business development campaign for the four districts of Srikakulam, Vizianagaram, Visakhapatnam and East Godavari.

He said 53 proposals worth Rs 229 crore had been received from entrepreneurs and others in the four districts and “nearly 70 per cent of the amount will be sanctioned and disbursed.”

The proposals were received form the sectors such as - food processing and agri-business sector, software units and more.

He said the APSFC had recently cut interest rates by 50 points and the minimum lending rate at present was 12.5 per cent, which is higher by one per cent or so more than that offered by commercial banks.

“We borrow from banks and lend it to the units. We do not have refinance facility,” the media report quoted him as saying.