Before applying for a MUDRA loan, it’s always better to check the eligibility criteria with as many lenders as you can. After checking, apply for the loan with the lender who can provide you with the best loan offer and fits your eligibility. If at all your loan proposal gets rejected, you can figure out why and work towards correcting what went wrong. For example, if your credit score is not what your lender expects, you can try to improve your score.
Having negative issues on your credit report will bring down your credit score. Likewise, if you have been missing out on any present EMI payments or other bill payments, this will affect your credit score. By paying off your current debt and paying your bills on time, you will be able to get your credit score back on track. There are three MUDRA schemes: Shishu, Kishore and Tarun, and these loans have different loan amounts. You can accordingly choose the scheme that fits your eligibility.