Fact Check: Government giving loan of Rs 1 lakh under PM Mudra loan scheme? Know what's the truth

A letter about financial assistance provided by the Central Government under the Pradhan Mantri Mudra Loan Scheme is being shared on social media. According to the letter, a loan of Rs 1,00,000 will be offered under the PM Mudra Yojana in exchange for Rs 1,750 in loan agreement fees.

The letter claims to be from the Indian Finance Ministry and states that the NRI Funding Scheme's interest rate will be 5%. According to the viral letter, there would be no fees for partial payments.

However, PIB has revealed that this letter is fake after fact-checking it. The Central Government has not announced any such aid, according to PIB. In a tweet, PIB stated, "An approval letter claims to grant a loan of Rs 1,00,000 under the PM Mudra Loan Yojna on payment of Rs 1,750 as loan agreement charges. This letter is Fake. FinMinIndia has not issued this letter."

An approval letter claims to grant a loan of ₹1,00,000 unon payment of ₹1,750 as loan agreement charges
#PIBFo/cQ5DW69qkT pic.twitter.com/jKXEKbYupe

— PIB Fact Check (@PIBFactCheck) January 30, 2023

What is Mudra Loan Scheme?

In April 2015, Prime Minister Narendra Modi introduced the Mudra Loan Scheme. Micro Units Development & Refinance Agency Ltd., also known as MUDRA, is a financial organisation established by the Government of India for the development and refinancing of micro-unit enterprises.

The Finance Minister made the announcement while presenting the Union Budget for Fiscal Year 2016. MUDRA's goal is to finance small businesses in the non-corporate sector through a variety of Last Mile Financial Institutions, such as banks, NBFCs, and MFIs.

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