Government Warns of Phony PM Mudra Loan Scheme, Allegedly Soliciting Rs 350 for Rs 5 Lakh Loan Application

Government Warns Public Against Pradhan Mantri Mudra Yojana Loan Scam

A viral message claiming to offer a Rs 5 lakh loan under the Pradhan Mantri Mudra Yojana (PMMY) has been circulating, falsely stating that beneficiaries can obtain such a loan after paying a Rs 350 processing fee. However, the Press Information Bureau's fact-checking unit has confirmed that the letter is completely fake and urged people not to fall for the scam.

According to the PIB Fact Check unit, the letter is a clear example of a phishing attempt, where fraudsters are misleading people by sending a so-called 'Loan Approval Letter' under the Pradhan Mantri Mudra Yojana. The letter falsely promises disbursal of Rs 5 lakh after the payment of a small processing charge.

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The government has clarified that MUDRA does not directly provide loans to individuals or micro-entrepreneurs. Instead, MUDRA functions as a refinancing agency that supports banks and other financial institutions, which then extend loans under the scheme.

Citizens are advised not to transfer money based on such messages and not to share personal, financial or banking details with unknown individuals or agencies. The PIB Fact Check unit has urged the public to verify any such claims only through official government sources before taking action.

The Pradhan Mantri Mudra Yojana was launched on April 8, 2015, to provide financial support to non-corporate and non-farm small and micro enterprises. Under the scheme, eligible borrowers can avail loans of up to Rs 10 lakh. Entrepreneurs who have previously taken and successfully repaid loans under the 'Tarun' category can get loans of up to Rs 20 lakh under the expanded 'Tarun Plus' category.

The MUDRA loans are offered through Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, Micro Finance Institutions (MFIs) and Non-Banking Financial Companies (NBFCs). Borrowers can apply directly through these lending institutions or submit applications online through the official Udyami Mitra portal.

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