108 GRANT OF LOANS AND ADVANCES TO AGRICULTURISTS. 



13. (1) In the case of a loan -granted by instalments, if the 



Closure of loan, on applicant, after taking one or more instalments, 

 failure to take instal- 

 ment due. fails to take any other instalment within six 



weeks from the date on whicn he is entitled to it, the Collector may 

 declare the loan closed. 



(2) The total of the instalments taken by the applicant shall 

 then constitute the loan, which shall be treated as having been fully 

 paid on the date on which the last instalment was actually taken ; and 

 a fresh arrangement for repayment shall be made by the Collector, 

 consistent with rules 17 and 18. 



14. (1) The ordinary rate of interest on loans shall be one 



anna in the rupee, or 6 per cent, per 



Interest on loans. 



annum. 



(2) The Local Government may, for special reasons, and on special 

 application through the Board of Revenue, sanction a loan at a lower 

 rate of interest, or without interest. 



(3) If any instalment of principal or of interest, or of consolidated 

 principal and interest, is not paid when it falls due, the Collector shall 

 charge interest on it at 6J per cent, per annum, from the date of its 

 falling due to the date of payment : 



Provided that, whenever the Collector is satisfied that the default 

 is due to inability to pay, and that the levy of such interest would be 

 productive of hardship, he may, with the sanction of the Commissioner, 

 reduce or remit it. 



(4) In charging penal interest on overdue instalments not sus- 

 pended under rule 2(J, the same period of 15 days' grace shall be 

 allowed as in the case of payments of cesses, and thereafter interest 

 shall be charged on the total of the overdue instalment at the same 

 rate as the interest on the loan. 



15. (1) Interest shall be levied for the period intervening 

 Interest for interven- between the date of the completion of the loan 



ing period. ( m cases i n which loans are granted in one pay- 



ment), or between the dates of the payment of the instalments (in cases 

 in which loans are granted in instalments), and the date from which 

 the first instalment of interest, consolidated with the first instalment 

 of the principal, becomes payable. 



(2) The interest leviable in such cases shall be demanded in a lump 

 sum on the date on which the first consolidated instalment of principal 

 and interest is made payable. 



