Amendment status not verified — confirm the current text below against the official source.
(1) Any person belonging to the Backward Classes may submit to the Controlling Authority an ap- ication in the prescribed form, supported by an affidavit stating the amount of loan desired by him, the purpose for which it is desired and the manner in which the re- payment of the loan, if granted to him, is proposed. (2) The Controlling Authority, if satisfied that the applicant is a person belonging to the Backward Classes, may sanction the loan to the extent of the amount stated in the application or any lesser amount, subject to a maximum of two thousand rupees in each case. 5, (1) When an application for loan has _ been sanctioned, the applicant shall execute a bond in the prescribed form undertaking to apply the money lent to the purpose or purposes for which, and to fulfil the con- ditions on which, the loan has been sanctioned. (2) For the loan so sanctioned, the applicant shall furnish One surety, and the person and property of the applicant as well as of the surety shall be liable for the repayment of the loan and costs, if any, incurred in making or recovering the loan : Provided that the Controlling Authority may in any case exempt the applicant from furnishing a surety.