Other guarantees by State Government

(1) The State Government may by general or special order authorize the grant of loans to members by the State Agriculture and Rural Development Bank or the Agriculture and Rural Development Banks for the development of land in excess of the loans to which such members may be entitled on the basis of the value of the lands determined in accordance with the principles of valuation approved by the State Government such excess not exceeding such limits as may be specified in such order. (2) In respect of loans granted in accordance with sub-section (1), the State Government may guarantee for a specified period the repayment of the loan to the extent of the excess granted to the members.