For the purpose mentioned in clause (v) of ~le 3, a Pa,nchayat may after passing a resolution to that effect at its .meeting, ntlse loans on its own responsibility and without the sanction-of.- the State Governme,nt:
Provided that the total amount of loans take'n during the course of the year,does not ex;:ceedits three months current expenditure or on~-forth of its estimated revenue for the year in which the loan is t6 be taken whichever is less :
, Provided further that the loan is repayable within one year from the date on which it is taken and the interest on\such loan shall not be payable at the rate exceeding 16% per'annum",i '9. Government loans.-Any Government \loan granted .will be subject to the following conditions, namely:- '
(a) The term of the loan does not exceed' thirty years unless the Governmentftxes a longer period as a 3pecial case. .
(b) Funds are available from the grant voted by the State Legislature for the purpose'of such loans. .
(c)The rate of interest payable on the loan is such as the Government may determine.
--1 I J .~ R.12 PAN. LOANS "FROM GOVT. OR FIN. INSTI. RULES, 1999 (PR)585 I '1 "
(d) Interest shall be charged yearly or half-yearly as the Government may determine, and shall be reckone::land paid on each installment from the date on which such installment v:as proposed to be taken.
(e) The Government may if it thinks fit, direct that a penal rate of interest not exceeding 2.5 percent above the normal rate of interest shall be paid upon all overdue installme:lts of interest or of principal and interest.
(f1 Repayments made will first be appropriated towards _interest balance, if any, towards principal.