Validity of Facility is the period for which a sanctioned facility remains valid for use. It is different from repayment tenor in some products. Expired validity should block disbursement or utilization unless renewed. 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, a facility may lapse or require renewal if documentation or sanction validity expires before disbursement. 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.