MSME Interest Calculator
Calculate MSME Interest under the MSMED Act using monthly compounding and RBI Bank Rates.
Purpose
This tool calculates MSME Interest under the MSMED Act using monthly compounding and RBI Bank Rates.
Step 1 – Upload File
Upload Excel containing invoice data.
Supported formats:
After upload, sheet preview will be displayed.
Step 2 – Select Data Sheet
Choose:
- Source Sheet
- Starting Data Row
Example:
- Header Row = 1
- Data Starts = 2
Step 3 – Map Required Columns
| Column |
Description |
Example |
| Invoice No Column |
Invoice Number |
INV-001 |
| Vendor Name Column |
Vendor Name |
ABC Industries |
| Invoice Amount Column |
Invoice Value |
₹50,000 |
| GRN Date Column |
Goods Receipt Date |
01-Apr-2026 |
| Payment Terms Column |
Credit Days |
45 Days |
| Payment Date Column |
Actual Payment Date |
30-Jun-2026 |
Step 4 – RBI Bank Rates
The tool contains default RBI Bank Rates.
MSME Interest Rate = RBI Bank Rate × 3
Example:
- RBI Rate = 6.50%
- MSME Rate = 19.50%
Step 5 – Edit Rates (Optional)
Select "Yes – Edit Rates" if custom rates are required.
You may:
- Add new rates
- Modify existing rates
- Delete rates
Effective dates must be unique.
Step 6 – Generate MSME Working
Click: "Generate MSME Working"
The system automatically:
- Calculates Due Date.
- Identifies delay period.
- Applies RBI Rate applicable for each period.
- Calculates MSME Rate.
- Calculates monthly compounded interest.
- Generates detailed working.
Step 7 – Review Output
Calculation Summary
Displays:
- Total Invoices
- Total Principal
- Total Interest
- Total Payable
MSME Working Preview
Generated columns:
- Invoice No
- Vendor Name
- GRN Date
- Due Date
- Payment Date
- Period Start
- Period End
- Opening Principal
- RBI Rate
- MSME Rate
- Days
- Formula
- Interest
- Closing Principal
Step 8 – Export Working
Click: "Download MSME Working Excel"
Output contains complete interest calculations and audit trail.
Important Notes
MSME Due Date
Due Date = GRN Date + Payment Terms
Maximum allowed credit period under MSMED Act = 45 Days.
Interest Calculation
Interest is calculated:
- At 3 times RBI Bank Rate
- With Monthly Compounding
- For delayed payment period only
Typical Use Cases
- ✔ MSME Act Compliance
- ✔ Statutory Audit
- ✔ Internal Audit
- ✔ Vendor Payment Review
- ✔ Delayed Payment Analysis
- ✔ Financial Due Diligence
- ✔ Interest Provision Calculation
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