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
-
Apply only through recognised banks or authorised lending institutions.
-
Cross-check any communication on the official Mudra website (mudra.org.in) or through your bank branch.
-
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:
A #Fake approval letter claims to grant a loan of ₹5,00,000 under PM Mudra Yojana on payment of ₹2,100#PIBFactCheck
✔️@FinMinIndia has not issued this letter
✔️Refinancing Agency – MUDRA doesn't lend directly to micro-entrepreneurs/individuals
🔗https://t.co/cQ5DW69qkT pic.twitter.com/O7Hx8uYcUx
— PIB Fact Check (@PIBFactCheck) June 15, 2025
Any letter demanding money upfront for a Mudra loan approval is fraudulent. Always verify through official government or bank channels before taking action.
Ahmedabad Plane Crash