Other guarantees by State Government

Where the State Co-operative Agricultural and Rural Development Bank or a Co-operative Agricultural and Rural Development Bank has given a loan to a member for the development of any land in excess of the amount of the loan to which such member would be entitled on the basis of the value of the land as determined in accordance with the principles of valuation approved by the State Government, the State Government may, if they think fit, guarantee for a specified period the repayment of the loan to the extent of the excess.