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A serious warning has been issued for citizens after a fake loan approval letter in the name of Pradhan Mantri Mudra Yojana (PMMY) started circulating widely on social media platforms. The viral document falsely claims that a loan of ₹7 lakh has already been approved and asks applicants to deposit an “agreement charge” of ₹860 to receive the money.

The Government of India, through its official fact-checking agency PIB Fact Check, has confirmed that this letter is completely fake and has urged people not to fall for such scams.

According to the viral message, recipients are informed that all formalities have been completed and a Mudra loan of ₹7,00,000 has been sanctioned in their name. To proceed further, they are asked to pay ₹860 as a processing or agreement fee.

PIB Fact Check has categorically stated that no such loan approval letters are issued directly under the Mudra scheme and no advance fee is ever demanded for loan disbursal.

The government has made it clear that Pradhan Mantri Mudra Yojana does not operate through WhatsApp messages, SMS links, or social media posts. Any communication asking for money in advance is a clear sign of fraud.

Authorities have warned that scammers are misusing the popularity of government schemes to trap innocent people, especially small traders, self-employed individuals, and first-time loan seekers.

Under the Mudra scheme, the central government does not directly provide loans to individuals. Instead, MUDRA (Micro Units Development and Refinance Agency) acts as a refinancing institution.

Loans are offered through:

• Public and private sector banks

• Regional Rural Banks (RRBs)

• NBFCs

• Microfinance institutions

• Small Finance Banks

Eligible borrowers can apply for loans under Shishu, Kishore, and Tarun categories, depending on their business needs and eligibility.

To avail a genuine Mudra loan, applicants should:

• Visit their nearest bank branch

• Apply through the official Mudra or bank website

• Submit required documents like ID proof, business details, and income records

No bank or financial institution will ask for money before loan approval.

• Be alert if you receive loan approval without applying

• Never pay any “processing” or “agreement” fee in advance

• Avoid clicking unknown links or sharing OTPs

• Always verify details from official government portals or banks

• Report suspicious messages to authorities immediately

The government has appealed to citizens to remain cautious and not trust claims made through unofficial channels. Always remember—any demand for upfront payment in the name of PM Mudra Yojana is a scam.