Section 5 in The Assam Aid to Industries (Small and Cottage Industries) Act, 1955
5. Terms for grant of loan.
- The Government or the authorities empowered to sanction the loan may grant loan to a cottage industry on the following terms-(i)The grant of a loan is to be secured and repaid to the prescribed manner and upon such terms and may be fixed by the order granting it:Provided that no such loan shall exceed upto a maximum of 75% of the total value of the security as prescribed.Provided also that notwithstanding anything contained in this Act and subject to such rules as may be prescribed, the Director or the authority empowered to issue loan may sanction loan upto Rs. 25,000.00 on personal bond of the applicant and upto Rs. 30,000.00 on security of one or more sureties in addition to personal bond of the applicant.(ii)Government or the authority empowered to issue loan may lease machineries and equipments necessary for the purpose of the industry to the applicant on hire purchase system on execution of the Bond in the prescribed form.
