Fact Check

PIB Fact Check Exposes Fake PM Mudra Loan Letter Promising Rs 10 Lakh

The Press Information Bureau’s (PIB) Fact Check unit has exposed a fraudulent loan approval letter falsely claiming to offer a ₹10 lakh loan under the Pradhan Mantri Mudra Yojana (PMMY).

The forged document instructs applicants to pay a ₹6,550 processing fee before receiving the sanctioned amount.

Authorities have identified this as a common financial scam designed to deceive unsuspecting individuals and steal their money.

🚨 SCAM ALERT!

A #fake loan approval letter is circulating, claiming to grant a loan amount worth ₹10 Lakhs under the Pradhan Mantri Mudra Yojana on payment of a processing fee of ₹6,550.#PIBFactCheck:

❌ The letter is #FAKE.

✅ MUDRA does not provide direct loans to… pic.twitter.com/AX84pGYe7a

— PIB Fact Check (@PIBFactCheck) July 13, 2026

Officials clarified that the Micro Units Development and Refinance Agency (MUDRA) does not issue loans directly to borrowers.

Instead, it functions exclusively as a refinancing institution for banks, Non-Banking Financial Companies (NBFCs) and Microfinance Institutions (MFIs). These authorised lending agencies provide collateral-free loans of up to ₹10 lakh under PMMY, while the Tarun Plus category extends financial assistance of up to ₹20 lakh for eligible applicants.

The misleading document, purportedly issued by ‘EMI Finance’, contains fabricated applicant details, barcodes, banking information and an official-looking format to create a false sense of authenticity.

The image also carries prominent ‘FAKE’ stamps to help the public recognise the forged document and understand the tactics used by fraudsters.

PIB Fact Check urged citizens to remain vigilant and avoid making any advance payment or processing fee in exchange for promised government loans.

People should verify every financial communication through official government channels before sharing personal information or transferring money.

The agency reiterated that government-backed lending schemes follow authorised banking procedures and never demand upfront payments through unofficial letters or messages.

Also Read: Received A PM Mudra Loan Letter? PIB Says Check Before You Pay

Pragati Upadhyay

I report stories and occasionally rescue facts from chaos. By profession, I’m a journalist; by conviction, a social worker who believes words should move people, not just headlines. I question power, celebrate ordinary heroes, and sometimes irritate the comfortable. If truth had a shift, I’d probably be working overtime.