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DBS Bank India Waives Prepayment Fees for MSMEs

28 June 20251 min read
BANKING & FINANCEDBS Bank IndiaWaivesPrepayment Feesfor MSMEs28 June 2025safalsetu.com

Why in the news

DBS Bank India removed early repayment penalties for small businesses to ease credit access and cash flow management.

Key facts

  • Waiver: no prepayment or foreclosure charges for UDYAM-registered MSMEs, new and existing.
  • Effect: prospective, for loans closed after the announcement.
  • Objective: remove disincentives to repay early or refinance, especially in tough cycles or rising rates.

Significance

  • Flexibility without penalty; lets firms cut credit costs and seek cheaper funding.
  • Supports formalisation of UDYAM-registered MSMEs.

About UDYAM

The government’s official MSME registration portal, opening access to subsidies, financial support and formal credit.

Test yourself

1. DBS Bank India's waiver of prepayment and foreclosure charges applies to MSMEs registered on which portal?

The waiver is for MSME borrowers registered under UDYAM.

2. The DBS Bank India waiver applies to which loans?

It covers new and existing MSME borrowers, prospectively.

3. Under which ministry does the UDYAM portal for MSME registration function?

UDYAM is the official registration portal under the Ministry of MSME.