DBS Bank India Waives Prepayment and Foreclosure Charges for UDYAM-Registered MSMEs
DBS Bank India Limited (DBIL) announced the waiver of prepayment and foreclosure charges for all Micro, Small, and Medium Enterprises (MSMEs) registered with UDYAM, making it easier for businesses to access credit and manage their cash flows. Announced on World MSME Day, this initiative reflected the bank’s ongoing commitment to supporting the MSME ecosystem in India. The waiver was made effective immediately and applies to both new and existing active borrowers.
This proactive step is aimed at enhancing borrower flexibility and aligned with regulatory guidance focused on increasing transparency in lending practices. It also addresses a long-standing challenge faced by many MSMEs, where foreclosure charges discourage early repayment or refinancing, thereby limiting their ability to optimize cash flow.
Commenting on the development, Mr. Sudarshan Chari, Managing Director and Head – SME Banking, DBS Bank India, stated, “Access to flexible and affordable credit remains a critical need for micro, small and medium enterprises. By waiving prepayment and foreclosure charges, we have addressed a common challenge that often-limited financial agility. This change enables businesses to repay loans early without penalty and reallocate funds towards immediate priorities such as inventory, technology and expansion. It aligns with our broader efforts to support MSMEs through need-based solutions that strengthen their resilience and support long-term growth.
DBS Bank India remains committed to empowering enterprises across the value chain, supporting their development at every stage. The bank’s SME banking offers a comprehensive suite of solutions tailored to the diverse needs of entrepreneurs, combining innovative financial offerings with deep regional understanding.
Entrepreneurs are able to open current accounts online quickly and efficiently, eliminating the burden of traditional paperwork. The bank also provides hassle-free business loans that enable quicker access to funding for working capital and expansion needs. With its award-winning foreign exchange services and API-led banking integrations, DBS Bank India supports businesses in enhancing operational efficiency, automating workflows and responding more effectively to market opportunities.
Furthermore, the bank’s mobile-enabled corporate banking platform, DBS IDEAL, allows businesses to manage payments, monitor cash flow and track transactions in real time. The platform’s integration with Tally ERP facilitates connected accounting, enabling SMEs to reconcile records automatically and maintain better control over their financial reporting.
