According to Bye Law No. 71, members must pay simple interest in their outstanding debts to the Society at a rate of 21% annually, or at a lesser rate that the General Body may determine. However, the query still needs to be answered: how is interest calculated on society maintenance charges? So, for that, I have shared the formula below.
How to Find Interest Charges in Housing Society Maintenance?
The maximum interest rate allowed is 21% per annum, as per the Maharashtra Cooperative Societies Act, 1960, but most societies charge between 12% and 18% per annum. Interest is usually charged on a monthly compounded basis of the overdue amount.
Interest = (Outstanding Dues × Interest Rate/100×Days of Delay/365)
Let’s understand it with an example:
Maintenance Due: Rs.10,000
Interest Rate: 18% per annum
Days Delayed: 60 days
Interest = (10,000×18100×60/365) = Rs.295.89
Thus, the total payable amount would be Rs.10,295.89 after 60 days.
Each society has its own interest policy within legal limits. I hope you found this helpful.
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How is Interest Calculated on Society Maintenance Charges?
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2025-03-24T19:20:25+00:00 2025-03-24T19:20:26+00:00Comment
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