Loans and Sinking Funds

(1) A Panchayat Samiti may subject to the provisions of any law relating to the raising of loans by local authorities for the time being in force raise from time to time with the approval of the State Government, loans for the purposes of this Act and create a sinking fund for the repayment of such loans. (2) A Panchayat Samiti may borrow money from the Government or, with the previous sanction of the Government from banks or other financial institutions for furtherance of its objective on the basis of specific schemes as may be drawn up by the Panchayat Samiti for the purpose.

1. (2) A Panchayat Samiti may borrow money from the Government or, with the previous sanction of the Government from banks or other financial institutions for furtherance of its objective on the basis of specific schemes as may be drawn up by the Panchayat Samiti for the purpose.