19 August 2013
Dear All, I have a query regarding as to what is the penalty interest if repayment to MSME creditors is not made within the stipulated time period ? I have read the MSME Act, which says that penalty interest is thrice the interest rate as decided by the RBI at that time. I have searched on RBI site, but I am not getting the same. Might be that I am searching in a wrong way. So, I request to get an answer from experts that what is the penalty interest rate for late repayment of loan to MSME creditors ?
19 August 2013
Sir, I referred to your link which says that penalty for late repayment to MSME creditors is three times the bank rate as notified by RBI.I searched for bank rate instead of interest rate.I got the link for penal interest rates on short fall in reserve requirements, which are specifically linked to the bank rate. Please can anyone tell me the exact penalty for late repayment to MSME creditors. http://rbi.org.in/Scripts/NotificationUser.aspx?Mode=0&Id=8241#an
20 August 2013
In case of delayed period as on today you have to charge interest @10.25x3=30.75% p.a. . If you take monthly rate then 30.75/12= 2.5625% per month. .
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