Renewal is the periodic review and continuation of an existing credit facility after reassessment. It updates financials, conduct, security, documentation, and risk rating. Renewal differs from enhancement or fresh sanction. In MSME lending, it shapes how the facility is structured, priced, documented, disbursed and monitored after sanction. It should be reviewed with the borrower’s actual cash flows, existing exposure, repayment behaviour and the purpose for which the facility is being used. For example, renewal of a cash-credit limit should consider conduct, turnover, stock statements, financials, covenants and current exposure. It matters because facility terms influence cash-flow burden, utilisation behaviour, approval authority, documentation and customer communication. The common caution is to verify the amount, tenor, repayment cycle, moratorium, security, renewal terms and approval conditions instead of reading the field in isolation.