Interim Review is a mid-cycle assessment carried out before the normal annual renewal or full review is due. In MSME lending, it may be triggered by enhanced limits, adverse conduct, delayed financials, market stress, collateral issues, account irregularity, or a specific sanction condition. For example, a bank may approve a working-capital limit but require an interim review after six months based on GST sales and account turnover. This review helps the lender confirm whether assumptions made at sanction are holding true. It matters because borrower risk can change quickly between formal review dates. The common mistake is to treat interim review as a routine note; it should clearly record changes in financials, conduct, security, compliance, and required corrective action.