Fraudsters are targeting the poor looking to apply for loans under the PM Mudra Yojana. A fake approval letter offering ₹5,00,000 on payment of ₹2,100 is trending among applicants. However, people must exercise caution before transferring money to anyone. The government never asks for payment to grant loans under the scheme.
People believe that Mudra is responsible for lending directly to micro-enterprises. However, it is merely a refinancing agency. It is solely responsible for supporting commercial banks, small finance banks, regional rural banks, NBFCs, and micro-finance institutions that grant loans to micro-enterprises.
The PM MUDRA Yojana (PMMY) was launched in April 2015 to increase credit accessibility to micro-enterprises involved in non-corporate and non-farm activities. Under the scheme, these small firms can obtain loans of up to ₹20,00,000. The scheme provides loans to four different categories of micro-enterprises:
| Shishu | Early-stage businesses can receive up to ₹50,000 |
| Kishore | Established firms can get up to ₹5,00,000 for business expansion. |
| Tarun | Mature businesses requiring huge funds for expansion can receive up to ₹10,00,000 |
| TarunPlus | Large and well-established firms can receive more funds, depending on their requirements |
People working under the Non–Corporate Small Business Segment (NCSB) are eligible to apply. This comprises of numerous proprietorship / partnership firms operating as service sector units, small manufacturing units, fruits/vegetable vendors, shopkeepers, truck operators, machine operators, repair shops, small industries, artisans, and food processors, among others.
Broadly speaking, any Indian citizen who plans to set up a non-farm business to earn a profit can obtain loans under PMMY. This includes vulnerable sections of the population also, such as women and handicapped individuals.
This will depend on the institution granting the loan. The terms and conditions of the loan agreement are governed by two bodies. This includes the institution providing the loan and the Reserve Bank of India’s guidelines.
While PM Mudra Yojana provides crucial financial support to micro-enterprises, people must exercise caution to avoid losing money. Always verify loan application processes through legitimate channels and never pay any upfront fees to an unknown individual. Exercise vigilance and access credit through safe channels only.
Read on about how to identify gold scams. https://www.angelone.in/blog/is-your-gold-real-or-fake-learn-to-identify-gold-scams
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 18, 2025, 2:41 PM IST
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