These “MUDRA Loan Approval Letters” asking borrowers to pay processing fees / legal fees for loan disbursement are bogus
We received a document (allegedly “MUDRA Loan Approval Letter”) on FACTLY’s WhatsApp hotline to verify its authenticity.
When we looked on the internet, we found that a Facebook page with the name – “Pradhanmantri Mudra Yojna” also posted a similar letter with the description – “Government Approval Letter”. In the letters, it is mentioned that a processing fee / legal fee must be paid in order for the loan amount to be remitted. Let’s check the authenticity of the letters.
Claim: MUDRA loan approval letters asking borrowers to pay legal fees / processing fees for loan disbursement.
Made: There are a lot of inconsistencies and errors in the approval letters. Neither “Mudra Finance Private Limited” nor “Mudra Finance Limited” appear in the “List of partner institutions preselected to be partners of MUDRA”. In addition, there is no “National Financial Corporation Act 1956”, which is mentioned in the letter. Therefore, the assertion made by post is FALSE.
Before checking the authenticity of the letters, let’s understand a little about PM MUDRA Yojana (PMMY). On the website of the MUDRA (Agency for the Development and Refinancing of Micro Units), we can read that ‘The program was launched by the Prime Minister on April 8, 2015 to provide loans of up to 10 lakhs to non-commercial and non-agricultural small / micro enterprises. These loans are classified as MUDRA loans under the PMMY. These loans are granted by commercial banks, RRBs, small finance banks, MFIs and NBFCs. The borrower can apply to one of the authorized credit institutions or can apply online via this portal www.udyamimitra.in. Under the aegis of PMMY, MUDRA has created three products namely “Shishu”, “Kishore” and “Tarun” to indicate the growth / development stage and financing needs of the beneficiary micro-unit / entrepreneur and also provide a benchmark for the next phase of graduation / growth ‘. A detailed FACTLY article regarding the PMMY diet can be read here.
Various people across the country have received MUDRA loan approval letters similar to their respective names. Some of these letters can be seen here, here, here, here and here. There are a lot of clues in the letters that suggest they are bogus. Let’s look at each of them one by one.
Clue 1: Different headers and watermarks
It can be seen that the header design varies in the letters. The “EMI Finance” and “Mudra Loan” logos and watermarks are not consistent. Also, some letters can be seen that the PMMY logo mentions “True Success Stories”, which is taken from the Success Stories page on the official MUDRA website.
Clue 2: Same signature – Different names
Index 3: Approval agencies
Neither “Mudra Finance Private Limited” nor “Mudra Finance Limited” appear in the “List of partner institutions preselected to be partners of MUDRA”. In addition, there is no “National Financial Corporation Act 1956”, which is mentioned in the letter.
Clue 4: Same loan amount – Different processing fees / legal fees
In one of the documents on the MUDRA site, we can read that ‘banks may consider charging an upfront fee in accordance with their internal guidelines. Upfront fees / processing fees for Shishu loans are waived by most banks‘. For example, on the SBI website, it can be seen that the processing fee is zero for Shishu and Kishore loans to MSE units and for Tarun loans it is 0.50% (plus applicable taxes) of the amount. of the loan. But the processing fees shown in these letters are not uniform in the approval letters. For the same loan amount, the processing fees indicated are different.
There are many other inconsistencies and grammatical errors in the letters, which are very rare in official bank letters. The account details shown in the letters for filing processing / legal fees are different in each letter. Company addresses and support numbers are also not the same. Most of the given phone numbers don’t work. FACTLY (pretending to be a borrower who received a similar letter) was able to speak to someone on one of the phone numbers. The person on the phone requested that the mentioned amount (which he said would be repaid) be deposited to the given account number so that the loan amount could be disbursed.
The official website of ‘MUDRA’ is ‘https://www.mudra.org.in/’. But, in a letter, a website address – ‘www.financemudra.net’ is given, which is currently not working. The archived version can be viewed here. In another letter, there is a website – ‘http://mudrapmyojana.com/’. The phone number listed on the website is also invalid. By checking the website on ‘who.is’ it was found that the website was registered recently in May 2020 and the phone number given for website registration can be found on another website -‘ Tata Fianance ”(Another questionable website that was registered recently in March 2020). So it’s not a government website. The official website mentions that borrowers can apply online for MUDRA loans on the Udyamimitra portal.
In addition, many people across the country have complained on social media that they have received similar fake letters on WhatsApp. Some of them also paid huge sums and complained that they had been duped. These complaint messages can be read here, here and here.
To sum up, these “MUDRA Loan Approval Letters” asking borrowers to pay processing fees / legal fees for loan disbursement are bogus.
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