PIB Fact Check: A fake loan approval letter claiming that a Rs 2 lakh loan has been sanctioned at an interest rate of just 1% under the Pradhan Mantri Mudra Yojana (PMMY) is circulating online. The Press Information Bureau’s (PIB) Fact Check unit has flagged the letter as fake and urged people not to fall for such misleading claims.

PIB clarified that MUDRA is a refinancing institution and does not directly provide loans to individuals or micro-entrepreneurs. Loans under the PMMY can instead be obtained through eligible lending institutions, including nearby bank branches, RBI-registered NBFCs and Microfinance Institutions (MFIs).

“>August 30, 2026


People are advised to verify any loan-related communication through official channels and avoid sharing personal or financial details with unknown sources.

What is PM Mudra Yojana?

The Pradhan Mantri Mudra Yojana (PMMY) completed 11 years on April 8, 2026. According to data released by the central government, 577.9 million loans have been disbursed so far under this scheme, which was launched in 2015. Through these loans, financial assistance of over Rs 40 lakh crore has been provided to small entrepreneurs across the country.

According to the Finance Ministry, this scheme was launched in 2015 by Prime Minister Narendra Modi with the aim of “funding the unfunded,” i.e., providing unsecured loans to those who previously could not access credit from the banking system. Under this scheme, unsecured loans of up to Rs 20 lakh are provided to small non-corporate and non-agricultural businesses.

Finance Minister Nirmala Sitharaman said the scheme has played a major role in transforming the credit system for micro, small and medium enterprises (MSMEs) and small entrepreneurs. She added that India has seen a quiet transformation over the past 10 years, with millions of ordinary people confidently starting their own businesses. She also pointed out that nearly two-thirds of all loans have been given to women, while nearly one-fifth have gone to first-time entrepreneurs.