Amendment status not verified — confirm the current text below against the official source.
(1) No loan shall be granted to any indushy, of amount of other than a smalI scale industry, of an amount excee- lo an. ding seventy per cent or to any small scale industry of an amount exceeding ninety per cent of the net value of the assets of the industry after deduction of the value of all encumbrances existing at the time the ' application is made : Provided that in the case of a new or nasceqt scale industry. the State ~overnment may grant a ioan equal to the value of the security offered including collateral security, if- (i) the State Government is satisfied that it is necessary in the interest of the State to promote the development of such industry and the industry can not be established without the grant of assistance ; and (ii) the applicant agrees to associate a a o ~ n e e of the State Government with the manage- mmt of the industry and to regulate expenditure out of such loan in the prescribed manner : Provided further that subject to such other condi- t ions as may be presqribcd, a Igan for a period not exceeding two years may be given to a small scale industry bn the security of movable property inclu- ding stock in trade. (2) Notwithstanding anything contained in subv section (11, a loan of an ai11ount not exceeding five hundred rupees may be given in the case of an indus- try owned or managed by an artisan on the personal bond of the applicant or on the security of one or more personal sureties. (3) Tho valuation of the assets or the security, as thc case may be, under sub-section ( 1 ) shall be made in the prescribed manner by the Director or any ptber person authorised by him in tTut behalf. Bxp1attafiu11-For the purpose of such valuation the additional assets which may be created by th grant of such State-aid may be taken into account t . such extent as may be prescribed.