Repayment of loans

(1) Every loan granted under this Chapter shall be made repayable by instalments within such period from the date of the actual advance of the loan, or when the loan is advanced instalments, from the date of actual payment of the last instalment, and shall bear interest at such rate and be payable in such manner as may be fixed by the order granting the loan. (2) The period fixed as aforesaid shall not exceed twenty years unless the State Government, by general or special order, extends the same. (3) Notwithstanding anything contained in sub-section (1), where any sum is received by the State Government from the Khadi and Village Industries Commission constituted under the Khadi and Village Industries Commission Act, 1956 (No, 61 of 1956), or any other body corporate for the purpose of granting interest free loan to small scale industries, any loan granted by the State Government out of such sum shall not bear any interest.