(1) Every loan granted under this Act shall be secured by a mortgage upon the whole or such portion of the assets of the business or enterprise as the sanctioning authority may consider sufficient and where the whole of the assets of the business or enterprise is, in the opinion of the sanctioning authority insufficient, by such collateral security as may be required by the sanctioning authority and shall bear interest payable on such dates and at such rates as the Government may determine.
(2) Notwithstanding anything contained in sub-section (1), but subject to such conditions, restrictions and limitations as may be prescribed, loans may be granted under this Act, on the personal security of the applicant, and every such loan shall bear interest payable on such dates and at such rates as the Government may determine.
(3) Notwithstanding anything contained in sub-section (1), or sub-section (2), the Government may direct that any loan granted under this Act to any industrial business or enterprise shall not bear any interest.
Prohibition of transfer of property without permission of the sanctioning authority