Section 27A of The National Bank for Agriculture and Rural Development Act, 1981
1[27A. Loans to State Government, undertakings, etc.-- The National Bank may make loans and advances to any State Government or a corporation owned or controlled by the State Government or to any other person or class of persons, as may be approved by the Board, repayable on the expiry of a fixed period not exceeding twenty-five years from the date of making of such loans and advances and subject to such terms and conditions, as may be approved by the Board, for the purpose of development of infrastructure facilities for promotion of agriculture and rural development.]
Summary
- The bank can give loans for building rural infrastructure.
- These loans can be given to State Governments, corporations owned by State Governments, or other people approved by the Board.
- The Board sets the specific terms and conditions for these loans.
Practical examples
FAQ
1. What kind of projects are these loans for?
The loans are specifically for the development of infrastructure facilities that promote agriculture and rural development.
2. Can an entity other than a government get one of these loans?
Yes, the loans can go to any person or class of persons if they are approved by the Board for this purpose.
Test yourself
Q1.Under Section 27A of The National Bank for Agriculture and Rural Development Act, 1981, who is eligible to receive a loan for developing infrastructure?
Q2.Under Section 27A of The National Bank for Agriculture and Rural Development Act, 1981, what must the borrowed money be used for?
Q3.Under Section 27A of The National Bank for Agriculture and Rural Development Act, 1981, what is the maximum duration for repaying these loans?
Q4.Under Section 27A of The National Bank for Agriculture and Rural Development Act, 1981, who has the power to approve other persons or classes of persons to receive these infrastructure loans?