Section 32: Security for loans

(1) An association of individuals or group of persons seeking loan facilities under this Programme shall be required to show a commitment ten per centum of the loan required with a branch of any of the participating banks.
(2) Where the applicants are from a ward or a village, the ward or village head shall be required to identify and certify each member of the association or group as-
(a) indigenes of the ward or village;
(b) persons engaged in productive venture in the ward or village;
(c) persons identified with a trade for which the loan is required.
(3) The participating bank shall ensure that the plant, machinery and equipment purchased by the beneficiaries or movable or immovable properties of the beneficiaries are used as security for the loan required.
[1997 No. 20.]