This proactive step aims to enhance 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.
Commenting on the development, 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. 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 is committed to empowering enterprises across the value chain, supporting their growth at every stage. Its SME banking proposition offers a robust suite of solutions tailored to meet the diverse requirements of entrepreneurs, combining innovative offerings with deep regional expertise.
With its online account opening feature, entrepreneurs can set up current accounts quickly and seamlessly, eliminating the need for cumbersome paperwork. The bank also provides hassle-free business loans, enabling faster access to finance for growth and working capital needs. Through award-winning foreign exchange solutions and API-led banking integration, DBS Bank India helps businesses enhance operational efficiency, automate workflows, and respond swiftly to market opportunities.
DBS IDEAL, the bank’s mobile-enabled corporate banking platform, allows businesses to manage payments, monitor cash flows, and track transactions in real time. Additionally, the integration with Tally ERP enables connected accounting, allowing SMEs to automatically reconcile records and maintain better control over their financial reporting.
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About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia, and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world. In 2025, CRISIL Ratings reaffirmed its ‘CRISIL AAA/Stable’ rating on the corporate credit facility of DBS Bank India Ltd (DBIL). The rating on the certificate of deposits programme was also reaffirmed at ‘CRISIL A1+’.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 16 consecutive years from 2009 to 2024. In 2025, DBS Bank India was recognised as the Best Bank for Corporate Banking and Best Bank for Corporate Cash Management in India by CRISIL - Coalition Greenwich. Reinforcing its commitment to responsible banking and business practices, DBS was also named Best Bank for Sustainable Finance – India by Global Finance in 2024 and Best Bank for Diversity & Inclusion – India by Euromoney in 2024.
DBS Bank has been present in India for 30 years, opening its first office in Mumbai in 1994. DBS Bank India Limited is the first among the large foreign banks in India to start operating as a wholly owned, locally incorporated subsidiary of a leading global bank. As a trusted partner, DBS provides a range of banking services for large, medium, and small enterprises and individual consumers in India, focusing on a seamless customer experience that helps them ‘Live more, Bank less’. In November 2020, Lakshmi Vilas Bank was merged with DBS Bank India Limited. DBS Bank India is now present in ~350 locations in 19 Indian states.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
Media Contacts:
DBS Bank India
Rohini Rego
rohinirego@dbs.com
99305 49207
Adfactors PR
Kashni Kadakia
kashni.kadakia@adfactorspr.com
9820562269
