Section 19 in Regulations For The Disbursement of Loans Under The Low Income Group Housing Scheme, 1968
19. Repayment and further interest in case of default.
- Repayment shall be made in the manner laid down in Regulation 12. Each instalment shall become due on the first day of every month. If any instalment remains unpaid by the fifteenth day of the month, the borrower shall be liable to pay further interest on instalment at the rate of three per cent. per annum over and above the rate of interest leviable under Regulation 11 till repayment has been made. In case of any instalment remaining unpaid for six months or for breach of any provisions the entire outstanding amount of the loan with interest shall become payable forthwith and without prejudice to any other mode of recovery under the U.P. Avas Evam Vikas Parishad Adhiniyam, 1965, or any other law for the time being in force, shall be recoverable as arrears land revenue.In case the recovery of the unpaid amount of the loan is not made for a period of three months from the date it fell due, the Housing Commissioner shall be at liberty to take unconditional possession of land and building covered by the loan besides taking such other action as may be open to him under the law and/or these regulations.In case where a borrower is desirous of altering the monthly equated instalments by offering to repay the loan in a period shorter than the originally stipulated one, he may, during the currency of the entire period of repayment, exercise a maximum of two options for altering the number and quantum of monthly equated instalments, exclusive of the first option exercised by him at the time of execution of the prescribed Agreement/Mortgage-cum- Surety Bond. Any such option to be exercised by a borrower, should be for curtailment and not for extension of the period of repayments. In such cases, the recovery of the balance amount of loan will be regulated as follows:(i)The manner of repayment loan/balance of loan/with interest, shall continue to be in monthly equated instalments.(ii)The balance of loan, outstanding before the date on which the option is exercised, shall be treated for purposes of calculation of monthly equated instalment in respect of the outstanding loan, as a fresh loan.(iii)The rate of interest to be charged from the borrower in respect of the outstanding loan, will remain unchanged.
