Government Warns Against Fake PM Mudra Loan Scam Demanding ₹350 Processing Fee

The Government has issued a warning over a fake loan approval letter being circulated in the name of the Pradhan Mantri Mudra Yojana (PMMY). The message claims beneficiaries can receive a ₹5 lakh loan after paying a ₹350 processing fee. 

The Press Information Bureau’s (PIB) Fact Check unit said the document was fake and asked the public not to fall for such claims.  

The agency said fraudsters are using forged approval letters linked to government schemes to target people looking for loans.  

PIB Warns Against Payment Requests 

In a post on X, the PIB Fact Check unit said the fake letter promises loan disbursal after payment of a small processing charge. The agency clarified that no such fee is collected for loan approval under the scheme. 

The government advised citizens not to transfer money or share personal, financial or banking details with unknown individuals or organisations. It also asked people to verify such claims only through official government platforms. 

MUDRA Acts as Refinancing Agency 

The Centre clarified that MUDRA does not directly provide loans to individuals or small businesses. It functions as a refinancing institution that supports lending entities offering loans under the PMMY scheme. 

Mudra loans are provided through Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs). Applications can also be submitted through the Udyami Mitra portal. 

Scheme Launched In 2015 

The Pradhan Mantri MUDRA Yojana was launched on April 8, 2015, to support non-corporate and non-farm micro and small enterprises. Eligible borrowers can avail loans of up to ₹10 lakh under the scheme. 

The programme has 4 categories, Shishu, Kishor, Tarun and Tarun Plus, aimed at different stages of business funding requirements. Under the Tarun Plus category, borrowers with a satisfactory repayment record may be eligible for loans of up to ₹20 lakh. 

Read More: Air India Celebrates 100 Maharaja Club Partnerships Milestone with New Points Fest! 

Conclusion 

Authorities said fraudulent messages linked to loan schemes continue to circulate online. Citizens have been advised to verify loan-related communications through official sources before making payments or sharing personal information. 

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