Scam running in the name of Mudra loan
Image Credit source: ai generated
Nowadays everyone wants to start their own business, and for this money is needed. The government’s Pradhan Mantri Mudra Yojana has been created to provide financial help to such people. But what if you suddenly get a letter saying that your Mudra loan of Rs 5 lakh has been approved? Of course, you will be happy for a moment. But wait, this happiness may prove costly for you. These days, one such ‘loan approval letter’ is becoming increasingly viral in the market, which is actually a big trap laid by fraudsters.
Victims are being cheated by luring Rs 5 lakhs
The method of this financial fraud is very vicious. A letter is being sent to the common people, which looks exactly like a government document. In this letter it is clearly claimed that your business loan of Rs 5 lakh has been approved under the Pradhan Mantri Mudra Yojana. After luring such a huge amount, the fraudsters start their real game. A condition is laid down in the letter that to transfer the loan amount to your bank account, you will have to deposit only a ‘processing fee’ of Rs 350. A common man easily falls into the trap of these fraudsters considering Rs 350 as a very small amount compared to Rs 5 lakh.
🚨 SCAM ALERT!
A fraudulent ‘Loan Approval Letter’ is being circulated in the name of Pradhan Mantri Mudra Yojana, falsely promising disbursal of â‚ą5,00,000 on payment of a â‚ą350 processing fee.#PIBFactCheck: :
❌ The letter is #FAKE.
âś… MUDRA does NOT provide direct loans to pic.twitter.com/hJNnEsrDCr
— PIB Fact Check (@PIBFactCheck) May 4, 2026
PIB told the truth of the viral letter
When this matter started gaining momentum and such letters started reaching many people, the government’s fact-checking agency, Press Information Bureau (PIB) conducted a thorough investigation. PIB Fact Check has made it clear that this loan approval letter is completely fake. No such letter has been issued under the Mudra Scheme. Fraudsters have prepared this fake letterhead to take advantage of people’s trust in government schemes. Its only objective is to extort money from simple people in the name of processing fees.
What is the real rule of Mudra Yojana?
The most important thing that should be understood in this entire matter is the basic structure of the functioning of the Mudra scheme. PIB has clarified that ‘MUDRA’ does not directly give loans to any individual or micro-entrepreneur. Mudra is actually a refinancing agency. If we understand in simple language, this institution gives money to banks and financial companies, and then those banks distribute loans to the general public. Therefore, if any loan offer is coming to you directly in the name of Mudra, then understand that it is 100% fraud.
How to keep your hard earned money safe from fraudsters?
In this digital era, awareness and vigilance are the only way to protect. If you also receive any such message, email or letter, then be alert immediately. Never transfer money on the request of any unknown person or organization, even if the amount is as small as Rs 350. Also, do not share your bank account information or any personal data with anyone. Always verify information about government schemes from official sources or your nearest bank branch. A little caution on your part can save you from a big financial loss.
