PIB Flags Fake Mudra Loan Approval Letter Promising Rs 7 Lakh

The Press Information Bureau’s fact-checking unit has flagged as fake a circulating approval letter that claims to offer a loan of Rs 7,00,000 under the Pradhan Mantri Mudra Yojana upon payment of Rs 860 as agreement charges.

According to the fact check, the letter falsely promises sanction of a Mudra loan directly to an individual applicant after paying a nominal processing or agreement fee.

Authorities have cautioned that such claims are misleading and intended to defraud unsuspecting individuals.

The clarification comes amid rising instances of financial scams exploiting government schemes to gain credibility and lure victims into making payments.

The PIB emphasised that Micro Units Development and Refinance Agency (MUDRA) does not lend directly to micro-entrepreneurs or individuals. Instead, it operates as a refinancing institution.

MUDRA provides funds 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 entities, in turn, extend loans to micro and small business units engaged in manufacturing, trading, services, and agri-allied activities.

Officials have urged the public to remain vigilant and verify such claims through official sources before making any payments.

Further details about the scheme and its processes are available on the official MUDRA website.

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