Nayak Committee Turnover Method (RBI MSME) Calculator
What is my fast-track Working Capital Cash Credit limit based on 25% of annual turnover under RBI Nayak Committee guidelines?
Financial Inputs
Projected annual gross business revenue supported by GST returns and order books.
Current liquid surplus or internal accruals available as margin contribution.
Eligible Bank Finance (MPBF — 20% of Sales)
Under the RBI Nayak Committee formula, your company's Total Working Capital Requirement is assessed at ₹500 Lakh (25% of projected turnover).
Total Working Capital Requirement (25%)
5,00,00,000
Mandatory Promoter Margin (5%)
1,00,00,000
Key Financial Takeaways
- Under the RBI Nayak Committee formula, your company's Total Working Capital Requirement is assessed at ₹500 Lakh (25% of projected turnover).
- Your maximum eligible Bank Working Capital Limit (Cash Credit / Overdraft) is ₹400 Lakh.
- A minimum promoter margin contribution of ₹100 Lakh (5% of sales turnover) must be maintained.
Frequently Asked Questions
Which businesses are eligible for the Nayak Committee Turnover Method?
The Nayak Committee method is designed by the RBI specifically for Micro, Small, and Medium Enterprises (MSMEs) with aggregate fund-based working capital limits up to ₹5–10 Crore. It simplifies assessment without requiring complex CMA calculations.
Can the bank sanction more than 20% of turnover under Nayak method?
If a company has a longer operating cycle (e.g., specialized manufacturing or seasonal goods requiring higher inventory holding), banks can assess working capital on the Cash Budget or Tandon CMA Method to sanction higher limits.
Calculators on this platform provide indicative mathematical estimations based on industry-standard financial appraisal models (including Tandon Committee Method II, Nayak Turnover Method, and standard compound amortisation).
They do not constitute a formal facility sanction, credit commitment, or legal advisory from SME PAISA or any partner banking/NBFC institution. Final terms, interest margins, security stipulations, and credit sanctions remain strictly subject to formal credit appraisal, audited balance sheet verification, CMA Data assessment, and risk committee approval by institutional lenders.
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