The Press Information Bureau (PIB) Fact Check on Saturday exposed a fake ‘Loan Approval Letter’ circulating in the name of the Pradhan Mantri Mudra Yojana (PMMY).
The fraudulent document falsely claims that applicants can receive a loan of ₹5 lakh after paying a ₹350 processing fee.
In a post on X, PIB Fact Check clarified that the letter is completely fake and urged people not to fall for such scams. It advised citizens to avoid making any advance payments or sharing personal and financial information with unauthorised sources.
🚨 SCAM ALERT!
A fraudulent ‘Loan Approval Letter’ is being circulated in the name of Pradhan Mantri Mudra Yojana, falsely promising disbursal of ₹5,00,000 on payment of a ₹350 processing fee.#PIBFactCheck:
❌ The letter is #FAKE.
✅ MUDRA does NOT provide direct loans to… pic.twitter.com/hpjghH9xx1
— PIB Fact Check (@PIBFactCheck) July 11, 2026
The agency explained that MUDRA does not provide loans directly to individuals. Instead, it functions solely as a refinancing institution for banks, Non-Banking Financial Companies (NBFCs) and microfinance institutions. It also confirmed that MUDRA never charges processing fees or requests upfront payments from borrowers.
PIB Fact Check advised the public to obtain loans only through authorised lending institutions. It reiterated that genuine Pradhan Mantri Mudra Yojana loans are available without collateral through eligible banks, NBFCs and microfinance institutions.
Eligible borrowers can avail loans of up to ₹10 lakh under the PMMY scheme.
Under the Tarun Plus category, eligible applicants can receive loans of up to ₹20 lakh.
The scheme does not require middlemen, agents or advance payments at any stage of the application process.
The government urged citizens to remain alert against fraudulent messages and fake approval letters circulating online. It also encouraged the public to verify official information through authorised government sources before responding to any financial communication.
Also Read: PIB Fact Check Exposes Fake AI Investment Ad Using PM Modi, Mukesh Ambani
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