DBS Bank India waives prepayment, foreclosure charges for registered MSMEs 

DBS Bank India Ltd. (DBIL) said it has waived prepayment and foreclosure charges for all Micro, Small, and Medium Enterprises (MSMEs) borrowers registered with UDYAM, making it easier for businesses to access credit and manage cash flow.

The waiver is effective going forward and applies to both new and existing active borrowers.

This step is aimed at enhancing borrower flexibility and aligns with regulatory guidance focused on improving transparency in lending. “It also addresses a persistent challenge faced by many MSMEs—where foreclosure charges have often deterred early repayment or refinancing, restricting their ability to optimise cash flow management,” the bank said.

Sudarshan Chari, Managing Director, and Head – SME Banking, DBS Bank India, said, “Access to flexible and affordable credit remains a critical need for micro, small and medium enterprises.”

“By waiving prepayment and foreclosure charges, we are addressing a common challenge that often limits financial agility. This change enables businesses to repay loans early without penalty and reallocate funds towards immediate priorities or critical areas like inventory, technology, and expansion,” he said.