Delayed payment interest statement
INV-0042
Bill amount
₹1,00,000
Due date
2026-03-29
Overdue by
165 days
Principal outstanding₹1,00,000
Interest @ 19.5% p.a. (monthly compounding) for 165 days+ ₹9,271
Total claimable₹1,09,271
B2B money tools
MSMED delayed payment interest calculator
Big buyers paying your invoices 90+ days late? The law says they owe you 15% annual interest. Compute the exact claimable amount, download a supporting statement, and stop financing corporates for free.
MSMED Act toolkit
Charge Late-Payment Interest
Under Section 16 of the MSMED Act, 2006, registered micro/small suppliers are entitled to interest at three times the RBI bank rate (6.5% × 3 = 19.5% p.a.) when buyers pay later than the agreed credit period. If no agreement exists or the period exceeds 45 days, the Act deems the maximum credit period as 45 days before interest begins accruing.
19.5% p.a.
FAQ
MSMED interest questions
What is the MSMED Act interest on delayed payments?
Under Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, buyers who delay payment beyond agreed terms (capped at 45 days) must pay compound interest at three times the RBI bank rate — currently 15% per year with monthly rests — to registered micro and small suppliers.
Who can claim this interest?
Suppliers registered as Udyam/MSME selling goods or services to any buyer, including large corporates and government departments. Registration is free on the Udyam portal; you must be registered to file before an MSE Facilitation Council.
How is the interest calculated and enforced?
Interest runs from the day after the due date until actual payment. The primary remedy is filing a reference before the MSE Facilitation Council in your state (via the SAMADHAAN portal), which has the power to award the interest with monthly compounding. This calculator's statement organises your numbers for that process.
My buyer's terms say 60 days. Can they?
For MSME suppliers, payment periods exceeding 45 days are legally disregarded — interest runs from the 45th day regardless of longer contract terms. The tool flags this whenever credit days exceed 45.
Disclaimer: Indicative computation based on published MSMED provisions and common Council awards. Statutory rates and category rules change — verify with the SAMADHAAN portal or legal counsel before filing.
Prevention beats 15% compensation.
Invoices with scan-and-pay QRs get settled dramatically faster than net-90 promises.