Loans and Advances by State Government:

The Government grants loans and advances under the following main heads:-

• Loans to Municipalities, Autonomous bodies, Public Sector and Other undertakings, various industries etc.
• Loans/Advances to Government Servants.
• Loans to private individuals

The detailed accounts should be maintained by the departmental officers in respect of Loans and Advances to Government servants and private individuals.

The Loan Sections are responsible for the check of all loan payments against the sanctions and for watching of their recovery and repayments, maintaining Broadsheets in the prescribed forms for that purpose in respect of Loans to Municipalities, Autonomous bodies, Public Sector and Other undertakings, various industries etc.

Any default in payment, either of principal or interest, of Loans and Advances, the detailed accounts of which are kept by the Loan Section, should be reported without delay to the authority which sanctioned the loan or advance. If that authority enforces any penal interest upon the overdue installments of interest or principal and interest, it will be the duty of the Loan Section to watch the recovery.