Tools

MSME delayed payment interest calculator

Section 16, Micro, Small and Medium Enterprises Development Act, 2006 — compound interest at three times the RBI Bank Rate, with monthly rests.

Inputs

Principal / invoice amount (₹)

Date of acceptance / invoice date

Written agreement on credit period?

Agreed credit period (days)

Still unpaid — calculate up to today

RBI Bank Rate (% p.a.)

Calculate as of

This is an indicative calculation only. Actual liability may vary with the contract, the appointed day, changes in the Bank Rate over the delay, and the view of the Facilitation Council or the court. Consult counsel before issuing a formal demand.

Result

Due date—

Days overdue—

Interest—

Total payable—

Principal—

Section 16 rate—

Legal note

Ask counsel to review

Month-wise breakdown

#	Period	Days	Type	Opening	Interest	Closing

Compounding is applied at monthly rests from the day after the due date. A broken last period is charged in proportion of the monthly rate to the days in that calendar month. Bank Rate is taken as a single rate for the whole period unless you override it.

How the statute works

Section 15: the buyer must pay on or before the agreed date, which cannot exceed 45 days. If there is no written agreement, payment is due before the appointed day — 15 days from acceptance or deemed acceptance.
Section 16: on default, compound interest with monthly rests at three times the RBI Bank Rate, from the appointed day or from the date immediately following the agreed date.
Section 18: the supplier may refer the dispute to the Micro and Small Enterprises Facilitation Council.
Use the insights note for the dating rules in more detail.