Government may prescribe conditions subject to which a loan under this Act may be sanctioned.

Procedure for sanctioning loans

1. (1) Any refugee may submit to the Deputy Commissioner within the local limits of whose jurisdiction he intends to build a house an application in the prescribed form, supported by an affidavit, stating the amount of loan desired by him, the purpose for which it is desired and the manner in which the repayment of the loan, if granted to him, is proposed.
2. (2) The Deputy Commissioner if satisfied that the applicant is a refugee may--
   • (a) if the application is for a loan of a sum not exceeding Rs 5,000 sanction the loan to the extent of the amount stated in the application or any lesser amount as he may consider fit;
   • (b) if the application is for a loan of sum exceeding Rs. 5,000 forward it alongwith his recommendation as to the amount for which it may be sanctioned, to the Financial Commissioner. (2-A) Any company, co-operative society or association or body of individuals intending to build a house or houses may submit to the Registrar an application in the prescribed form supported by an affidavit, stating the amount of loan desired by it, the purpose for which it is desired and the manner in which the repayment of the loan, if granted to it, is proposed. (2-B) The Registrar, if satisfied that all the members of the company, co-operative society, association or body are refugees, may--
   • (a) if the application is for a loan of a sum not exceeding Rs. 5,000 per member of such company, co-operative society, or association or body, sanction the loan to the extent of the amount stated in the application or any lesser amount as he may consider fit;
   • (b) if the application is for a loan of a sum exceeding Rs. 5,000 per member of such company, co-operative society, or association or body, forward it alongwith his recommendation as to the amount for which it may be sanctioned to the Financial Commissioner;
3. (3) The Deputy Commissioner [or as the case may be the Registrar] may, after consulting such authorities, if any, as the [State] Government may prescribe, specify the conditions on which any loan sanctioned by him is made, and specify the instalments by which it is to be repaid.
4. (4) The Financial Commissioner shall after consulting such authorities, if any, as the [State] Government may prescribe, either reject the application or accept it in whole or in part, and may specify the conditions on which the loan is to be made, and specify the instalments by which it is to be repaid.