As per the MSMED Act, the supplier is entitled to receive compound interest with monthly rests at three times the bank rate notified by the Reserve Bank of India. When filing a claim, it is necessary to submit the delayed payment interest calculated up to the date of filing. However, for advocates and practitioners, calculating compound interest for each invoice can be challenging—especially when:
To address this challenge, our team has developed an MSME Interest Calculator. By simply entering the invoice details, the calculator automatically computes the delayed payment interest (considering applicable bank rate changes and part payments), and generates a ready-to-use PDF report for submission.
The MSME Interest Calculator solves this problem. Simply enter your invoice details, and it will:
Bank rate is a rate at which the Reserve Bank of India (RBI) provides the loan to commercial banks without keeping any security. There is no agreement on repurchase that will be drawn up or agreed upon with no collateral as well. The RBI allows short-term loans with the presence of collateral.
