Bills & payments

MSME Delayed Payment Interest Calculator (MSMED Act Sections 15–16)

Under section 15 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, a buyer must pay a registered micro or small enterprise within the agreed period, which cannot exceed 45 days from acceptance. If no period is agreed, the limit is 15 days.

If the buyer pays late, section 16 makes them liable for compound interest with monthly rests at three times the bank rate notified by the Reserve Bank of India. Enter the invoice amount and dates to work out the interest you can claim.

The unpaid bill

Amount due

₹

When was payment due?

Payment due date

Payment

Still unpaidInterest is worked out up to today.

RBI bank rate

% p.a.

The bank rate (repo rate + 0.25%). Check the current figure on rbi.org.in.

Interest you can claim

—

Enter the amount and due date

How this is worked out

Section 15: a buyer must pay a micro or small enterprise by the agreed date — never more than 45 days after acceptance — or within 15 days if nothing was agreed.

Section 16: if they don't, they owe compound interest with monthly rests at three times the RBI bank rate, from the due date — whatever the contract says.

Only micro and small enterprises with a Udyam registration are covered — medium enterprises aren't. If the buyer still doesn't pay, file on the MSME Samadhaan portal (samadhaan.msme.gov.in).

Frequently asked questions

What interest rate applies to delayed payments to MSMEs?

Compound interest with monthly rests at three times the bank rate notified by the Reserve Bank of India, from the date payment was due, under section 16 of the MSMED Act.

How many days does a buyer have to pay an MSME?

The period agreed in writing, up to a maximum of 45 days from the day of acceptance (or deemed acceptance) of the goods or services. Without a written agreement, payment is due within 15 days.

Where can an MSME file a delayed-payment complaint?

A registered micro or small enterprise (with Udyam registration) can file a case with the Micro and Small Enterprises Facilitation Council through the government's MSME Samadhaan portal.

Figures are for planning. The conditions in your tender document or contract always take precedence.

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