March 25, 2025: The Ministry of MSME has issued a warning against private agents offering loans under the Prime Minister’s Employment Generation Programme (PMEGP) scheme. These agents are allegedly handing over fake sanction letters and charging money from potential entrepreneurs.

The MSME Ministry clarified that no private party is authorized to sanction PMEGP projects. The PMEGP scheme is a central sector credit linked subsidy program implemented by the MSME ministry since 2008-09 to support first generation entrepreneurs across the country.

A fake approval letter allegedly issued by KVCIndia, claiming to grant a loan of Rs 17 Lakh on payment of Rs 51,000 under the PMEGP scheme, has also been exposed. The MSME ministry emphasized that it doesn’t directly deal with individual beneficiaries for any of its credit schemes.