DBS Bank India has announced the waiver of prepayment and foreclosure charges for Micro, Small, and Medium Enterprises (MSMEs) registered with UDYAM. This decision was made public on MSME Day, reflecting the bank’s ongoing commitment to supporting India’s MSMEs. The waiver applies to both new and existing active borrowers.
The initiative aims to enhance flexibility for borrowers while aligning with regulatory guidance that focuses on improving transparency in lending. By eliminating these charges, DBS Bank India addresses a significant challenge faced by many MSMEs—foreclosure charges that often deter early repayment or refinancing, limiting their ability to manage cash flow effectively.
Sudarshan Chari, Managing Director and Head of SME Banking at DBS Bank India, commented on the development: “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.”
DBS Bank India continues its efforts to empower enterprises across the value chain with tailored solutions designed for entrepreneurs’ diverse needs. Its SME banking proposition combines innovative offerings with regional expertise.
The bank facilitates online account opening for entrepreneurs, eliminating cumbersome paperwork. It also offers hassle-free business loans for growth and working capital needs. With award-winning foreign exchange solutions and API-led banking integration, DBS Bank India helps businesses enhance operational efficiency.
Additionally, DBS IDEAL, the bank’s mobile-enabled corporate banking platform, allows businesses to manage payments in real-time. Integration with Tally ERP provides connected accounting for SMEs.
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered in Singapore, it operates across Greater China, Southeast Asia, and South Asia. In 2025, CRISIL Ratings reaffirmed its ‘CRISIL AAA/Stable’ rating on DBS Bank India Ltd’s corporate credit facility.
Globally recognized for its leadership in digital banking innovation and sustainable finance practices, DBS has been awarded numerous accolades including “World’s Best Bank” by Global Finance.
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