Simple interest will be charged on advances granted to Government servants for house building, purchase of motor cars, motor cycles and other conveyances and for purchase of type-writers, or tents and in certain circumstances, for the payment of special passage advances made in England by the High Commissioner for India and for passage overseas. The rate is fixed from time to time with reference to the borrowing rate of the State Government. The interest will be calculated on balances outstanding on the last day of each month.Note 1. - In cases where pay bills for a month are disbursed before the end of the month an instalment in payment of an advance received through the pay bill will be taken as having been refunded on the first of the following month, the normal date for the disbursement of pay.Note 2. - If in any particular case any advance is drawn in more than one instalment the rate of interest will be determined with reference to the date on which the first instalment is drawn.
