(1)The Gram Mandal shall not obtain or raise any loan under section 31 without the approval in writing of the State Government.(2)The Gram Mandal shall not raise any loan for carrying out any work or scheme beneficial to the inhabitants of the village, unless it is to be carried out within the local limits of the Gramdan village.(3)Where a Gram Mandal desires to obtain a loan, it shall submit an application to the State Government through the Collector, containing the following particulars, namely :-(a)the purpose for which the loan is required, with details of the scheme or work proposed to be undertaken, the estimate of the cost involved, the period within which it will be completed, and the agency through which the work will be executed;(b)the amount of loan proposed to be raised with the rate of interest;(c)the security proposed to be offered;(d)the date within which the money is to be borrowed and when it is proposed to raise a loan in instalments, the date within which the first instalment is to be taken or raised; and the years in which it is intended to take or raise the other instalments;(e)the term of years for which the money is to be borrowed;(f)the method and arrangement (if any), for the repayment; and(g)a statement of liabilities previously incurred and loans raised, if any.(4)On receipt of an application under sub-rule (3), the Collector shall make such inquiry into the proposal and call for such additional details as he may deem necessary and send the application to the Government with his remarks, expeditiously.(5)The State Government shall, after such scrutiny, as it may deem necessary into the feasibility and utility of the scheme or work, for which the loan is proposed to be raised, either permit or refuse to permit the Gram Mandal to raise the loan with such conditions as it may deem fit.(6)Save in special cases, the repayment period of loan shall not ordinarily exceed fifteen years.(7)The Gram Mandal shall, annually, furnish to the State Government, through the Collector, the progress of scheme or work undertaken by raising the loan and amount spent for the purpose.(8)The Gram Mandal shall not, without the approval of the State Government, vary and term or condition of the loan, the scheme or work for which the loan is sanctioned.
