PM Mudra Yojana: 'Rs 5 Lakh Loan On Payment Of Rs 2100'? Govt Issues Clarification

A fake letter claiming to offer a Rs 5,00,000 loan under the PM Mudra Yojana in exchange for Rs 2,100 has sparked concern, prompting the government to issue a clarification through the PIB Fact Check team. The misleading document, circulating online, falsely attributes the offer to the Ministry of Finance and has been debunked as fraudulent.

What does the letter claim?

The letter in question claims to be an official approval for a Rs 5 lakh loan under the PM Mudra Yojana, provided the recipient pays Rs 2,100 as a processing fee. The document lists supposed terms of the loan and appears to bear an air of legitimacy, including professional formatting and references to government agencies.

A #Fake approval letter claims to grant a loan of ₹5,00,000 under PM Mudra Yojana on payment of ₹2,100 #PIBFactCheck 

✔️@FinMinIndia has not issued this letter

✔️Refinancing Agency - MUDRA doesn't lend directly to micro-entrepreneurs/individuals

🔗https://t.co/cQ5DW69qkT pic.twitter.com/khd1YvE6lP

— PIB Fact Check (@PIBFactCheck) January 7, 2025 

What’s fake?

PIB Fact Check  debunked the letter:

• The Ministry of Finance did not issue this letter- The government clarified that no such approval has been issued.
• MUDRA does not directly lend to individuals- The PM Mudra Yojana operates through authorized financial institutions such as banks, non-banking financial companies (NBFCs), and microfinance institutions. MUDRA is a refinancing agency and does not provide loans directly to individuals.

Government's warning

In its fact-checking post, PIB added an overlay stamp of "FAKE" on the letter to inform the public of its fraudulent nature.

Legitimate government schemes like the PM Mudra Yojana do not require any upfront payments for processing loans. Any communication that asks for such payments should be considered a red flag and reported immediately.