Interest in case of default

In the event of default committed by a member in the repayment of even a single installment of any loan or advance granted to a member under any provision of this Act by the due date as fixed by the sanctioning authority, the concerned member shall be liable to pay penal interest at such rate as may be prescribed, on the entire amount of the loan or advance sanctioned, from the date of drawal of such loan or advance till the repayment of the full amount of such loan or advance.