DBS Bank India has announced a waiver of prepayment and foreclosure charges for Micro, Small, and Medium Enterprises (MSMEs) registered with UDYAM. This initiative was unveiled on MSME Day, emphasizing the bank's dedication to supporting India's small businesses. The waiver is applicable to both new and existing borrowers.
This move aims to provide more flexibility to borrowers while aligning with regulatory guidelines that promote transparency in lending practices. It addresses a common issue where foreclosure charges have deterred early loan repayment or refinancing, hindering effective cash flow management for MSMEs.
Sudarshan Chari, Managing Director and Head of SME Banking at 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 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. It aligns with our broader efforts to support MSMEs with need-based solutions that strengthen their resilience and unlock long-term growth.”
DBS Bank India continues its commitment to empowering businesses across different stages of growth through its comprehensive SME banking services. These include easy account setup via an online platform, streamlined business loans for growth needs, foreign exchange solutions, and API-led banking integration for operational efficiency.
The bank’s corporate banking platform, DBS IDEAL, facilitates real-time management of payments and cash flows. Integration with Tally ERP supports automatic reconciliation of records for better financial control.
DBS Bank is recognized as a leading financial group in Asia with operations in 19 markets. In India since 1994, DBS operates as a wholly owned subsidiary offering diverse banking services across ~350 locations in 19 states.