Section 6(2) in Incentives to Industries in Bihar, 1986
(2)Seed Money loan given through D.I.C. and Industrial Area Development Authority, wherein loan is sanctioned on easy terms to entrepreneurs to meet a part of the promoters' contribution. The maximum limit of such seed money is Rs. 1,12,500. In all such cases the entrepreneurs will have to invest at least 50 per cent of the promoters' contribution. Seed Money will be sanctioned by the Directorate of Industries, Industrial Area Development Authority or D.I.C. on satisfying themselves on the basis of reports from the financial institution and or banks that there still exists a gap in the promoters' contribution and the entrepreneur is unable to invest the amount from his own resources. The loan amount will be repaid in 12 (twelve) equal annual instalments with 8 per cent per annum rate of interest with a rebate of 3 per cent on interest for timely payment of instalments. In case of default in repayment of loan, penal interest would be charged at the rate of 2 per cent on the overdue instalments.
