Loan Account
Introduction Government makes loans and advances to public and quasi-public bodies and to individuals. Some of these loans and advances are made under special laws, others for special reasons or as a matter of recognized policy. Except in the case of loans and advances made under special laws or in respect of which Government has issued any general rules or orders, the Accountant General may require that the reasons for making it as well as the conditions on which it is made are stated in full in the orders sanctioning the loan or advance. The Accountant General may also enquire the reason for any unusual condition, e.g. remission of interest in an individual case. The Accountant General should see that the conditions of repayment of a loan or advance are complied with by the debtor and should exercise a close watch over repayment of Principal and realization of interest, if any. In reviewing the outstanding loans and advances special attention should be directed to irregularities in repayment, acknowledgement of balances and unrealizable and doubtful assets.