An approval letter circulating online claims to offer ₹7,00,000 under the PM Mudra Yojana, requiring the payment of just ₹860 as agreement charges. Social media users and aspiring micro-entrepreneurs were urged to be cautious, as the document is not authentic.
The misleading letter falsely suggests that individuals can bypass standard procedures and receive immediate loans, which is entirely incorrect.
The Press Information Bureau has categorically stated that the circulated letter is fake. Mudra does not lend directly to micro-entrepreneurs, traders, or individuals. Any claim suggesting otherwise should be treated as fraudulent. Such scams are often designed to extract personal information or upfront payments from unsuspecting applicants.
Mudra operates as a refinancing agency. It extends financial support to last-mile financiers, such as non-banking financial companies (NBFCs), microfinance institutions (MFIs), societies, trusts, Section 8 companies, small finance banks, and regional rural banks.
These institutions, in turn, provide loans to micro and small business entities engaged in manufacturing, trading, services, and agri-allied activities. Through this system, Mudra ensures that funds reach genuine entrepreneurs while maintaining accountability and regulatory oversight.
The government has advised individuals not to make any payments or share personal details in response to such letters.
Genuine Mudra loans are sanctioned through authorised financial intermediaries, following proper application and verification procedures. Beneficiaries should always verify information through official portals and avoid unofficial intermediaries.
This incident highlights the need for vigilance among micro-entrepreneurs seeking financial assistance. The Mudra scheme remains a vital support system for small businesses across India, but only through legitimate channels.
Awareness and caution can prevent scams and ensure that beneficiaries receive authentic assistance under the government programme.
Also Read: PIB Issues Alert Over Fake SMS Claiming Undelivered Packages
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