Loans and Advances by State Government

The Government grants loans and advances under the following main heads:- 1. Loans to Municipalities, Autonomous bodies etc. (including advances to cultivators). 2. Loans to Government Servants. 3. Advances repayable. The Loan Sections are responsible for the check of all loan payments against the sanctions and for watching of their recovery and repayments, maintaining Broadsheets in the prescribed forms for that purpose. Any default in payment, either of principal or interest, of Loans and Advances, the detailed accounts of which are kept by the Loan Section, should be reported without delay to the authority which sanctioned the loan or advance. If that authority enforces any penal interest upon the overdue installments of interest or principal and interest, it will be the duty of the Loan Section to watch the recovery.