Rule 252 — GFR

Rule 252 (1) Procedure to be followed for recovery of loans and interest thereon and Grant of moratorium. The instructions issued by the Ministry of Finance from time to time prescribing the interest rates and other terms and conditions of loans to State and Union Territory Governments, Local Bodies, Statutory Corporations, financial, industrial and commercial undertakings in the Public Sector shall be strictly followed.

Rule 252 (2) The recovery of loans shall ordinarily be effected in annual equal installments of principal together with interest due on the outstanding amount of principal from time to time. The repayment and interest installments may be rounded off to the nearest rupee subject to final adjustment at the time of payment of last installment of principal and/or interest.

Rule 252 (3) A suitable period of moratorium towards repayment might be agreed to in individual cases having regard to the projects for which the loans are to be utilized. However, no moratorium shall ordinarily be allowed in respect of interest payable on loans.