Terms on which a loan may be granted under section 13-A(7)

A loan to be granted to a tenant under sub-section (7) of section 13-A shall be on the following terms, namely:— (i) the amount of loan shall not exceed seventy five percent of the price of the land at which the tenant is buying the land; (ii) the tenant shall mortgage the land purchased by him, with the President of India till the entire loan amount and the interest payable thereon is fully paid to the Government; (iii) the loan shall bear an interest of nine per cent per annum and shall be repaid in ten equal or nearly equal annual instalments before such date as may be fixed by the Collector; the first instalment shall be payable on the expiry of one year from the drawal of loan; (iv) if an instalment of loan amount and the interest due thereon is paid within the prescribed period, the tenant shall get a rebate of three percent in the rate of interest payable by him at the time of such payment: (v) the tenant shall not be entitled to the transfer in any way his interest in the land till the loan amount and the interest due thereon is fully repaid; (vi) if the tenant commits any default in payment of any instalment of the loan amount and the interest due thereon, the balance amount of the loan to be repaid shall become immediately recoverable and Government shall be entitled to sell the land in any manner deemed suitable by the Collector and the balance amount of the loan and the interest shall be recovered from the sale proceeds and the balance, if any, shall be handed over to the defaulting tenant.