Section 12 in The Bihar and Orissa Natural Calamities Loans Rules, 1934
12. Interest of loans.
(1)The rate of interest to be charged on loans shall be fixed by the local Government, and the rate or rates so fixed shall be published in the Gazette.(2)In calculating interest a period of half a month or less shall be disregarded, and any period exceeding half a month shall be taken as one month.(3)The interest due on each date of repayment shall be calculated on the whole amount of the loan, or where any portion of the loan has already been repaid, on the whole amount of the loan less that portion.(4)When an instalment of principal is paid after the date on which it is due-(a)if it is paid within the financial year in which it falls due in addition to the interest due on the outstanding balance of the loan under clause (3), interest shall be realized on such instalment from the date on which it fell due up to the date on which it is paid at the rate fixed for the loan;(b)if it is paid after the close of the financial year in which it fell due, in addition to the interest due on the outstanding balance of the loan under clause (3), interest shall be realized, on such instalment, from the date on which it fell due up to the date on which it is paid, at the rate of two pies per rupee per month for each complete month between the date on which the instalment fell due and the date on which payment was made.(5)When a loan becomes repayable under Section 6(2) or Section 7 (2) of the Act the Collector may order that the balance outstanding of the loan shall bear interest from the date on which the loan is repayable in accordance with the provisions of either of the said sub-sections to the date of payment at such rate as he thinks fit not exceeding 2 pies per rupee per months for each complete month.
