Section 18: Loans for house building and other purposes

(1) A loan may be granted by the employer to an employed person for the purpose of—
(a) building a house or for effecting repairs in and extension of, an existing house; or
(b) purchase of a built house or of a plot for building a house; or
(c) the marriage of the employed person, his son or daughter; or
(d) treatment of prolonged illness of the employed person or of a member of his family.

(2) (i) A loan for the purposes specified in clause (a) of sub—rule (l), other than for the purposes of effecting repairs in an existing house and for the purposes of clauses (b) and (c) of the said sub—rule shall not exceed an amount equal to thirty-six calendar months’ wages of the employed person or ten thousand rupees whichever is less.

(ii) For the purpose of effecting repairs to an existing house, the amount of loan shall not exceed three thousand rupees.

(iii) The amount of loan for the purposes specified in clause (d) of sub-rule (1) shall not exceed a sum equivalent to four calendar months’ wages of the employed person or one thousand rupees whichever is less.

(iv) Interest on all such loans shall not exceed 6 per cent per annum.

(3) The amount of loans sanctioned under sub—rule (1) and repayments thereof together with interest thereon shall be entered in a register in Form X which shall be maintained  up—to—date and kept at the establishment or as near to it as possible.