(1) Government of Nepal, state and local levels can take internal loans within the limits recommended by the Commission. But the provincial and local levels will have to get the consent of the Nepal government before taking internal loans.
(2) The Government of Nepal and the provinces may raise internal debt by issuing bonds subject to prevailing laws (3) When requesting the consent of the Government of Nepal to take an internal loan, the provincial and local levels shall submit a proposal to the Ministry with details of the plan for taking the internal loan, the returns and achievements that can be obtained from the plan, the loan repayment plan, and the details of the lending institution.
(4) If the proposal submitted according to sub-section (3) is found to be implementable, the Government of Nepal may give consent to the concerned province or local level to take internal loans.