Fact Check: PIB Warns Against PM Mudra Yojana Loan Scam: Beware of Fake Approval Letters

The Press Information Bureau has recently issued a fact check warning citizens about fraudulent loan offers circulating online that claim to provide loans under the PM Mudra Yojana 2025. These fake messages and letters promise financial assistance but demand upfront payments, misleading thousands of potential borrowers.

What is The Scam About?

According to the official PIB Fact Check, fraudsters are sharing fake approval letters claiming to provide a PM Mudra Yojana loan of Rs. 3,00,000. They ask victims to pay Rs. 36,500 as legal insurance charges or processing fees before the loan is approved. This is completely false. The government clearly states that there are no upfront charges for availing a Mudra loan.
Such fraudulent offers are created to trap small business owners, entrepreneurs, and self-employed individuals who are eligible for the scheme. The scam is spreading rapidly through WhatsApp messages, emails, and social media platforms, including Twitter and X.

Official PIB Fact Check Guidelines

The PIB emphasises that citizens should rely only on official PM Mudra Yojana loan channels. Here are the key points:
No Advance Payment Required - Genuine Mudra loans do not require any upfront fees or insurance charges.

Verify Through Official Websites - Visit the official PMMY portal or contact authorized banks for any loan application.

Report Fraud - If you receive suspicious messages, report them to PIB Fact Check via WhatsApp at +91 8799711259 or email at factcheck@pib.gov.in.

How to Protect Yourself from PM Mudra Yojana Scams

Never share your personal bank account or UPI details with unverified sources claiming to process Mudra loans.

Always refer to the official PM Mudra Yojana website or government portals for accurate information.

Inform friends, family, and small business owners about fake Mudra loan scams to prevent them from falling prey.

About PM Mudra Yojna

The Pradhan Mantri Mudra Yojana (PMMY) is a government scheme started in 2015 to help small business owners, shopkeepers, street vendors, and entrepreneurs get easy loans without needing big collateral or security. Under this scheme, people can borrow up to Rs. 10 lakh from banks and financial institutions to start or expand their business. The loans are given in three categories, Shishu (up to Rs. 50,000), Kishore (up to Rs. 5 lakh), and Tarun (up to Rs. 10 lakh) depending on the stage and size of the business. The main aim of PM Mudra Yojana is to support self-employment and small businesses in India.

The fake PM Mudra Yojana loan schemes exploit the trust of small entrepreneurs. Many victims have already lost money, thinking they were accessing legitimate government support.

It is very important to remember that real government loans are never processed through WhatsApp or social media, and no official approval requires advance payments.