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What is Annual, Monthly reducing Balances?

Reducing balances means the time at which interest is calculated and applied to the Loan account. Repayments of home loans are by way of equated installments, paid every month. But housing finance companies adopt different modes of adjusting these monthly repayments towards the Loan accounts and to bring down the due Loan. In annual reducing balance method, the monthly repayments received from the borrower are kept in a suspense account and transferred to Loan account only once in a year (generally on 1st of April). To be more clear, if your Loan amount on 1st April, 2003 is Rs. 5,00,000/- and you pay monthly installments of Rs. 10,000/-, your entire payment of Rs. 1,20,000/- (10,000/- x 12 = 1,20,000/-) will be adjusted towards Loan amount only on 01/04/2004 and interest from 1.4.2003 to 31.3.2004 will be calculated on Rs. 5 lakhs. This works out very costly, as you will be paying the interest on Rs. 5,00,000/- for the entire 12 months. In case of monthly reducing, the repayments are credited to your Loan account on a particular day in a month, though you have paid much earlier. If any particular housing finance company has fixed 15th of every month, for such adjustments, and you have paid on 5th of the month, your Loan amount gets reduced only on 15th. Most of housing finance companies have shifted from annual reducing balance to monthly reducing balance. Most preferable mode is daily reducing type, where your Loan amount gets reduced on the very day of your payment.


A person is having more than one flat in a building. Is his voting rights in proportion to his stake?

Ours is a registered Association (Societies Act)  and we are collecting the maintenance charges equally irrespective of the fact whether it is a two or three bed room flat or of the UDS area. 
This decision is taken in our G.B. Meeting because of the fact that the maintenance is collected for keeping the Security personnel, cleaning and lighting the common area, purchase of water when yield from bore wells are not sufficient and pumping water from bore well to sump and from sump to OH tank. 
We are providing 24 hours uninterrupted water supply. We wish to know whether any mention is made in the act regarding collection of maintenance charges.

The legal grounds under which a defaulting tenant can be vacated: is that if any tenant   guilty of an act or conduct which is nuisance to other occupiers of the portions in the same building or buildings in the neighbourhood can be forced  to vacate as per prevailing law.
In our case, one among eight owners (residents) is willfully creating a nuisance by the way of additional burden to remaining residents (owners or their tenants) by not sharing the expenses towards common facilities but continuing to enjoy all the common facilities.

Can the Customer, after executing agreement, by a simple letter authorize the Company to present the same for registration before registrar?

In case of non compliance of the provisions of this Act, what are the consequences?

Whether the Karnataka Apartment Ownership Flats( Regulation of the Promotion of constructions, sale and management and Transfer) Act, 1972 is in force ?

For what purposes housing loan can be availed?

What is defect liability period? What do you mean by guarantee and warranty period?

When the builder will hand over the project to the owners association and what documents builders are supposed to give?

When a project is called a “Completed Project”?