Loan Account / ലോൺ അക്കൗണ്ട്
Kerala Financial Code, Kerala Treasury Code, Account Codes of both Central and State Governments and provisions in Manual of Standing Orders (A&E) and the Office Manual prepared on the basis of the MSO (A&E) are followed in maintaining the Accounts of Loans & Advances.
Government makes loans and advances to public and quasi-public bodies and to Government employees. Some of these loans and advances are made under special laws, others for special reasons or as a matter of recognised policy. Except in the case of loans and advances under special laws or in respect of which Government has issued any general rules or orders ,the Accountant General may require that the reasons for making it as well as the conditions on which it is made are stated in full in the orders sanctioning the loan or advance. The Accountant General may also enquire the reason for an unusual condition, e.g. remission of interest in an individual case. The Accountant General should see that the conditions of repayment of a loan or advance are complied with by the debtor and should exercise a close watch over repayment of Principal and realisation of interest, if any. At the time of review of the outstanding loans and advances, special attention is to be paid to the irregularities in repayment, acknowledgement of balances and unrealisable and doubtful assets.