PIB Warns Of Fake PM Mudra Yojana Loan Letter Offering Rs 7 Lakh for Rs 860 Fee

A fraudulent letter circulating online claims to offer a loan of ₹7,00,000 under the PM Mudra Yojana upon payment of ₹860 as agreement charges.

The Press Information Bureau (PIB) has categorically clarified that this letter is fake and warned citizens against falling prey to such scams.

The PM Mudra Yojana does not provide loans directly to micro-entrepreneurs or individual applicants. Instead, Mudra functions as a refinancing agency for last-mile financiers.

These include non-banking financial companies (NBFCs), microfinance institutions (MFIs), societies, trusts, Section 8 companies, small finance banks, and regional rural banks.

Under the scheme, these financial institutions lend to micro and small business entities. These businesses may be engaged in manufacturing, trading, services, or agri-allied activities.

Mudra provides funding support to these intermediaries, enabling them to extend credit to eligible entrepreneurs.

The PIB warns that any message offering direct Mudra loans for a nominal fee is fraudulent.

Verify all information only through official government channels or authorised financial institutions.

Do not pay advance charges or share personal banking details; doing so can cause financial loss and identity theft.

Mudra supports micro and small businesses through banks, NBFCs, and other intermediaries. Only these authorised lenders can provide loans.

Entrepreneurs and the public should stay vigilant — any claim of direct loans for upfront fees is a scam.