If you're Udyam-registered and your client hasn't paid in 45 days, the MSMED Act entitles you to 16.5% compound interest — and their tax deduction is blocked until they pay. Papagye sends the reminders automatically. You never follow up again.
Add your invoice once (takes a minute). Papagye tracks the due date, sends escalating reminders to your client on Day 15, Day 30, Day 45 — and on Day 46, your email cites Section 16 of the MSMED Act and the exact interest accruing daily. No WhatsApp. No spreadsheet. No awkward calls. Just a paper trail your client's auditor will notice. Works with any invoice you already raise. Nothing to migrate.
→ Add your first invoice — free to startThe MSMED Act, 2006 (Micro, Small and Medium Enterprises Development Act) protects Udyam-registered Micro and Small enterprises from delayed payment. Here's what it says:
Formula (MSMED Act §16, compounded monthly):
Interest = P × (1 + r/12)^n − P
Where: P = principal (invoice amount), r = 0.165 (16.5% annual = 3× RBI Bank Rate 5.50%), n = number of months overdue
| Invoice Amount | Days Overdue | Statutory Interest | Total Legally Owed |
|---|---|---|---|
| ₹50,000 | 30 days (1 month) | ₹688 | ₹50,688 |
| ₹50,000 | 60 days (2 months) | ₹1,384 | ₹51,384 |
| ₹50,000 | 90 days (3 months) | ₹2,089 | ₹52,089 |
| ₹1,00,000 | 60 days (2 months) | ₹2,769 | ₹1,02,769 |
Figures calculated at 16.5% p.a. compounded monthly per MSMED Act §16 (RBI Bank Rate 5.50% × 3). For a live interactive calculator, see Section 16 MSMED Interest Calculator →
No credit card. No setup. Add an invoice in 60 seconds and Papagye handles every follow-up from Day 15 to Day 46+, with MSMED Act language automatically inserted once the deadline passes.
→ Add your first invoice free7-day free trial, no card needed. Paid plans from ₹199/month. Cancel anytime.
Only Micro and Small enterprises with a valid Udyam registration (udyamregistration.gov.in) that predates the invoice. Medium enterprises and traders are excluded from the §15–16 interest route. If you have a Udyam certificate, you almost certainly qualify as Micro or Small.
Yes. Section 16 has a non-obstante clause — it overrides any private agreement. A contract clause granting more than 45 days is unenforceable against a Micro or Small enterprise. The statutory rate applies from Day 46 regardless of what your contract says.
Legally, you can choose not to claim it, but no clause in your contract can obligate you to waive it in advance. You retain the statutory right — and the mere mention of it in a reminder email is often enough to accelerate payment.
The government's free online dispute resolution portal at odr.msme.gov.in. You can file a case without a lawyer. The Micro and Small Enterprises Facilitation Council (MSEFC) award is enforceable as a civil court decree. Papagye's Day 46+ emails mention this portal to signal to your client that escalation is real and free.
No. Papagye works alongside whatever you use — paste the invoice number, amount, and client email. We track the dates and send reminders. Nothing changes in your existing workflow.
Reminders are sent from Papagye's verified sender on your behalf and are clearly attributed to you (your name, your invoice number). Your client knows these are your reminders, automated.
One recovered invoice pays for months of Papagye. Start free — no card needed.
→ Add your first invoice — free to startPapagye automates reminder delivery. Interest figures are illustrative under MSMED Act §16 at RBI Bank Rate 5.50% (statutory rate 16.50% p.a., compounded monthly) and do not constitute legal advice. Confirm your Udyam classification and invoice dates with your CA before filing any MSEFC claim.