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Section 11: Security for loans

The Rajasthan State Aid to Industries (Loans) Rules, 1963State Rules of Rajasthan · 1961

Q) Q) @) 4) Loans up to Rs, 1,000/- may be advanced on personal bonds furnished in Form provided in the case of Poultry farm loan will be given against a surety or tangible securities of equal amount.

Loans exceeding Rs. 1,000/- but not exceeding Rs. 5,000/- may be advanced on the security of one or two sureties furnished in Form V1 provided one case of Poultry farm loan will be given against tangible security at equal amount, Loans in excess of Rs. 5,000/- in each case may be advanced against any one or more of the securities mentioned below :— (@) 75% ofthe market value of any of the securities mentioned in section 20 of the Indian Trust’s Act, 1882 (Central Act 2 of 1882),

(ii) 75% of the market value of new machinery, plant and buildings,

(iii) 509% of the market value of the old machinery, plant buildings and lands and

(iv) 75% of the value of the plant, machinery and buildings to be purchased or constructed with money advanced under these rules.

In the case of an Industrial Co-operative Society, no security shall be needed for the advance of loan not exceeding the maximum credit of the Society, and ifthe amount of the loan recommended to be advanced exceeds such credit limit, the excess amount willbe advanced on the security of 75% of the market value of new machinery, plant, buildings or of 50% of the market value of the old machinery, plant, buildings and lands of such society.

1489

(3) Notwithstanding any thing contained in this tule, where a new industryis being set up by a qualified engineer either individually or jointly or incolloboration with the Rajasthan Industrial & Mineral DevelopmentCorporation or any other Corporation established by any law or anyCompany incorporated under the Companies Act, 1956 in which theState Government owns not less than 51% of the paid up share capitalloans to the extent of 100% in value of one or more of the securities mentioned in the foregoing sub-rules may be advanced.

Explanation :

For the purposes of this rule, the expression “Qualified Engineer” means @ person who holds a degree or diploma in any branch of Engincering, awarded by a university established by law or bya Government Polytechnic or any institution recognised by the State Government.

Where this provision sits

ActThe Rajasthan State Aid to Industries (Loans) Rules, 1963
Section11
Marginal noteSecurity for loans
JurisdictionState of Rajasthan
StatusIn force as published by the source

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