Received Mudra Loan Letter Promising Rs 10 Lakh For Rs 6,550 Fee? This Might Be A Scam

The Press Information Bureau (PIB) has warned citizens about a fake loan approval letter circulating on social media that falsely claims to offer a Rs 10 lakh loan under the Pradhan Mantri Mudra Yojana after payment of a processing fee of Rs 6,550.

The warning was issued by PIB Fact Check, which said the document is fraudulent and is misleading people seeking financial assistance through government-backed schemes.

PIB Busts Fake Loan Letter

In a social media post on X (formerly Twitter), PIB Fact Check has stated that the circulating loan approval letter is fake and does not represent any official process under the Mudra scheme.

According to the post, the document claims that applicants can receive a Rs 10 lakh loan under the Pradhan Mantri Mudra Yojana after paying a processing charge of Rs 6,550. PIB clarified that such claims are false.

The fact-checking unit urged people not to trust such messages and advised them to verify information through official sources before making any payments.

How The Mudra Scheme Works

PIB has clarified that Micro Units Development and Refinance Agency Ltd. (MUDRA) does not directly provide loans to individuals or micro-entrepreneurs. The Pradhan Mantri Mudra Yojana (PMMY) is designed to support micro and small enterprises engaged in sectors such as manufacturing, services, trading and certain agriculture-related activities.

Instead, MUDRA functions as a refinancing institution. It provides financial support to banks, non-banking financial companies (NBFCs), microfinance institutions, regional rural banks, small finance banks and other authorised lending institutions. These entities then extend loans to eligible borrowers.

Warning Against Advance Fee Demands

The government has advised citizens to remain cautious of messages, letters or calls that demand advance payments, processing fees or other charges in exchange for loan approvals under government schemes.

PIB Fact Check has stated that genuine Mudra loans are available only through authorised financial institutions. Individuals seeking loans under the scheme should approach recognised lenders and verify all information through official channels.

Verify Claims Before Making Payments

Reiterating its warning, PIB said any request for money in return for a guaranteed loan approval under a government scheme should be treated as suspicious.

The agency urged people to cross-check such claims through official government websites, authorised lenders or bank branches before sharing personal information or making payments.

Authorities have also advised citizens to report suspected fraud and misleading claims to prevent financial losses and help curb the spread of scams targeting borrowers.