RULE 19: PROCEDURE FOR FINANCIAL ASSISTANCE


(1) The Board may provide financial assistance as provided for under Section 6 of the Act.

(2) Any applicant who is desirous to seek financial assistance from the Fund, shall apply to the Board in Form A.

(3) The Secretary of the Board or an officer authorised by the Board shall, as soon as may be, after the receipt of an application referred to in sub-rule (2), process the application.

(4) It shall be open to the Board or its authorised officer.

(a) to call for any further information from the applicant:

(b) to appoint an expert or experts to make an investigation and report on any aspect relating to the application.

(5) No refusal of grant of financial assistance shall be made unless an opportunity is given to the applicant of being heard.

(6) The decision of the Board on any application shall be final.

(7) An authorised officer may disburse the financial assistance approved by the Board as per the terms and conditions laid down by the Board.

(8) The disbursement of financial assistance referred to in sub-rule (7) shall be subject to an agreement between the Board and the applicant, as laid down by the Board.

(9) The interest to be charged on the loan shall be at a rate as decided by the Board.

(10) In case of any default in repayment of the amount of the loan, or payment of any instalment thereof or interest thereon, an additional interest as may be fixed by the Board on the amount of default shall be payable by the loanee.

(11) The Board may, in part or in full, waive the payment of such additional interest under special circumstances.

(12) The repayment of loan together with interest thereon shall commence one year after the project is successfully completed and in any case before the end of the fourth year from the date of disbursement of loan, and the loan amount along with interest due thereon shall be recoverable in five annual instalments.

(13) In case of the project having been declared as a failure in terms of provisions of the agreement, the Board may consider waiving of the recovery of the interest and the loan amount; and in such an eventuality, the unutilised balance amount shall be refunded to the Board and the assets created shall be disposed of in a manner decided by the Board.



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