Is CIBIL™ score required for Mudra loan?

No, CIBIL score™ is not required to get a Mudra Loan as the government has launched this scheme to help people start a new business or grow an existing business.

Credit scores play a crucial role in determining your loan eligibility and interest rates. So, if you have a low credit score, a bank might charge you a higher interest rate for the loan or even reject your application. But if you are applying for Mudra loan you don’t have to worry about this as Mudra loan does not require credit scores. But what is actually required for availing Mudra loans are:

• The minimum age of the applicant must be 18 years and the maximum age limit is set to 65 years.
• Loans can be availed by non-farm, income-generating businesses in trading, manufacturing and services.
• The requirement of credit must be Rs. 10 lakhs or lower.
• Entities must be engaged in allied agriculture services since 1st April 2016.

While Mudra loans do not require a good credit score, having a high score can work to your advantage. It can give you leverage, when negotiating with the lender. Credit score is very crucial in terms of availing various banking facilities. Many banking benefits can be availed by having a healthy credit. Never neglect your credit as it's the key to not just one but a handful of services.