Amendment status not verified — confirm the current text below against the official source.
The Governm ent or the authorities em pow ered to sanction the loan m ay grant loan to a Sm all or Cottage Industry on the fol low ing term s.—The grant of a loan is to be secured and repaid in the prescribed manner and upon such terms as may be fixed by the order granting i t : Provided that no such loan shall exceed upto a maximum of 75 per cent of the total value of the security as prescribed. Security may also include personal security: Provided also that notwithstanding anything contained in this Act, and subject to such rules as may be prescribed, the Director of Cottage Indus tries may in cases of loans not exceeding Rs.1,000 issue the loan only on the personal security of the borrower, with or without a surety or sureties. Government or the authority empowered to issue loan may lease machi neries and equipments necessary for the purpose of the industry to the ap plicant on hire purchase system, on execution of the bond in the prescribed form.