PIB Fact Check unearths truth behind this viral letter on PM Mudra loan scheme; have you also received any such post?

PIB Fact Check: The government’s fact-checking unit ‘PIB Fact Check’ has detected fake news doing rounds on the internet, which claims if a beneficiary is seeking a loan of 1 lakh under PM Mudra Yojana, then he/she will have to pay Rs 1,750 to avail the loan.

The government’s fact-checking team has completely rejected this fake announcement being circulated on social media with a letter attached to it.

“An approval letter claims to grant a loan of Rs 1,00,000 under the PM Mudra Yojana on payment of Rs 1,750 as loan agreement charges,” PIB Fact Check said through its Twitter handle.

While terming it misleading, it further said, “This letter is Fake. Finance Ministry has not issued this letter.” The tweet also has the link to the Mudra scheme page that answers all frequently asked questions.

Through Pradhan Mantri Mudra Yojana, one can take a loan of Rs 50,000 to Rs 10 lakh. The loan is collateral free and there is no processing fee on it.

What is PM Mudra Yojana?

PM Mudra Yojana is a government scheme that was started in the year 2015. In this scheme, loans are given to non-corporate and non-agricultural works. The collateral free loans up to Rs 10 lakh can be availed without mortgaging properties and neither it requires deposit security.

What is Mudra?

MUDRA, which stands for Micro Units Development & Refinance Agency is a financial institution set up by the government for the development and refinancing of micro units enterprises. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs, and MFIs.

Loans available in three categories

Under this scheme, the government gives loans in three categories.

Shishu: covering loans up to 50,000/-

Kishor: covering loans above 50,000/- and up to 5 lakhs

Tarun: covering loans above 5 lakhs to 10 lakhs