A document circulating on social media that claims to approve a ₹5 lakh loan under the Pradhan Mantri Mudra Yojana (PM MY) in exchange for an upfront processing charge of ₹2,100 has been declared fake by the government’s fact-checking arm PIB Fact Check.

What the viral letter claims

  • Uses the PM Mudra Yojana logo and a forged Ministry of Finance heading.

  • States the recipient’s loan application has been “approved” for ₹5 lakh.

  • Demands an immediate payment of ₹2,100 as an “agreement charge” before disbursal.

Government clarification

  • The Ministry of Finance has not issued any such letter.

  • MUDRA is only a refinancing agency; it does not lend directly to individuals or micro-entrepreneurs.

  • Genuine Mudra loans are processed only through banks, NBFCs and micro-finance institutions, with no upfront fee for approval letters.

How to verify genuine Mudra loans

  1. Apply only through recognised banks or authorised lending institutions.

  2. Cross-check any communication on the official Mudra website (mudra.org.in) or through your bank branch.

  3. Never transfer money to unknown accounts for “processing” or “agreement” fees.

What to do if you receive such a letter

  • Do not pay any amount requested in the letter.

  • Inform your local bank branch or the nearest police cyber-cell.

Check out the tweet by PIB:

Any letter demanding money upfront for a Mudra loan approval is fraudulent. Always verify through official government or bank channels before taking action.

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