Lien is a lender’s right or recorded mark over an asset, deposit, account balance, or security until the borrower’s obligation is satisfied. In MSME lending, liens are commonly placed on fixed deposits, securities, receivables, or specific balances used as collateral or margin. For example, a borrower may provide a fixed deposit as security for a bank guarantee, and the bank marks a lien so the deposit cannot be freely withdrawn. This matters because it protects the lender’s interest and prevents the borrower from disposing of the asset without clearance. The strength of lien depends on proper documentation, system marking, ownership, and legal enforceability. The common caution is to confirm that lien marking is actually completed, not just mentioned in sanction notes.