Market Value is the estimated price an asset may command in a normal open-market transaction between willing buyer and seller. In MSME lending, it is commonly used for property, machinery, vehicles, or other collateral offered as security. For example, a valuer may estimate the market value of an industrial property based on location, size, usage, title, comparable sales, and current demand. This value matters because it influences collateral coverage, LTV, margin, and sanction comfort. However, market value is not always the amount the lender can recover in default. The common caution is to also consider distress value, legal defects, prior encumbrances, asset liquidity, sale time, and enforcement cost.