PM Mudra Yojana Alert: A fake loan approval letter pretending to be from the Pradhan Mantri Mudra Yojana (PM Mudra Yojana) is making the rounds on social media. This letter claims that a loan of Rs 7 lakh has been approved and requests an agreement fee of Rs 860. The PIB Fact Check, the government’s fact-checking agency, has labeled it as entirely fraudulent and warned people to stay vigilant.
What does the fake letter claim?
The viral letter asserts that after fulfilling certain requirements, a Mudra loan of Rs 700,000 has been approved in the person’s name. In exchange, they are asked to pay Rs 860 upfront. PIB Fact Check has made it clear that no such letters are issued directly under the Mudra scheme, and asking for an advance fee for a loan is illegal.
How does the Mudra scheme actually function?
The government does not provide loans directly through the Pradhan Mantri Mudra Yojana. MUDRA acts as a refinancing agency that supplies funds to banks, NBFCs, microfinance institutions, RRBs, and small finance banks. These entities then lend money to qualified small businesses.
What is the correct way to apply for a loan?
Legitimate loans are only accessible through authorized banks or financial institutions. To apply, reach out to your bank branch or visit the official website for more information. Avoid trusting any unknown calls, messages, or social media posts.
How to steer clear of scams?
- Be cautious if you receive a claim of loan approval without having applied.
- If you are asked for any advance payment in exchange for the loan, recognize that it is a scam.
- Always verify information through the official portal or bank only.
- Report any suspicious cases right away.