(2)The Collector shall forward such loan application received under Sub-rule (1) to the State Government with his recommendations thereon, if after due examination and enquiry he is satisfied that the following conditions are fulfilled, namely :(a)that the application is in the prescribed form and has been accompanied by the resolution of the Grama Panchayat;(b)that the statements contained in the application are true and correct;(c)that the financial position of the Grama Sasan is sound enough to enable it to repay the loan applied for;(d)that the term of the loan does not exceed fifteen years;(e)that in respect of a loan applied for from the State Government, the Grama Sasan has furnished an undertaking to pay interest at such rate or rates as would be fixed by the State Government in respect of the loan applied for;(f)that in case of loans applied for raising orchards or for digging or renovation of tanks for pisciculture purpose, the land on which the orchard or tank is proposed to be raised or dug, or the tank proposed to be renovated, vests in or belongs to the Grama Sasan;(g)that in case of loans applied for construction of buildings or sheds, the land on which the building or shed is proposed to be constructed vests in or belongs to the Grama Sasan;(h)that in case of a loan applied for from the State Government, the total loan (both Government and non-Government loan) outstanding against the Grama Sasan at the time does not exceed 10 times the average of its income of the three years preceding the year in which the application is made;Exception - This condition may be relaxed in case of Grama Sasan which have not completed three years.(i)that in case of a non-Government loan applied for, the amount of such loan including the amount of such loans outstanding at the time does not exceed three times the income of the Grama Sasan preceding the year in which the application is made and the total loan (both Government and non-Government loans) outstanding at the time including the one, applied for does not exceed 10 times the average of the income of the three preceding years of the Grama Sasan ;Provided that where the Grama Sasan intends to take up any irrigation project the amount of loan may exceed the above limit but shall not exceed five times the income of the Grama Sasan preceding the year in which the application is made;(k)that the work for which the loan is applied for would be feasible and also remunerative to the Grama Sasan.
