Fact Check: Is Govt offering Rs 1 lakh loan on payment of Rs 1,750 under PM MUDRA Yojana?

A rumour is prevailing all over social media, claiming that Ministry of Finance has issued an approval letter, charging Rs 1,750 as a loan agreement fee to grant a loan up to Rs 1 lakh under Prhan Mantri MUDRA Yojana.

PIB debunks fake news of loan under PM MUDRA Yojana.

Press Information Bureau (PIB) took to Twitter on Wednesday to debunk viral letter on social media that claimed a loan of Rs 1,00,000 under PM Mudra Yojana, granted upon payment of Rs 1,750 as loan agreement charges. fact-checking department has said letter is fake, and Finance Ministry of India has not issued it.

What is Prhan Mantri MUDRA Yojana?

Prhan Mantri MUDRA Yojana (PMMY) is a scheme launched by Prime Minister Narendra Modi on April 8, 2015, which provides loans up to Rs 10 lakh to non-corporate, non-farm small and micro enterprises. Commercial banks, RRBs, small finance banks, cooperative banks, MFIs, and NBFCs facilitate se loans. Late Union Finance Minister Arun Jaitley announced scheme while presenting Union Budget for Fiscal Year 2016. 

Any Indian Citizen who has a business plan for a non-farm income-generating activity such as manufacturing, processing, tring or service sector whose credit need is up to Rs 10 lakh can approach eir a Bank, MFI or NBFC for availing of MUDRA loans under PMMY. usual terms and conditions of lending agency may have to be followed for availing of loans under PMMY. lending rates are as per RBI guidelines issued in this regard from time to time.