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Section 68
Borrowable

(1) Rural municipalities and municipalities may take internal loans for productive, employment-oriented, internal income-raising and capital works within the limits of the recommendations of the National Natural Resources and Finance Commission and approved by the relevant assembly.
(2) The loan as per sub-section (1) cannot be taken for a period of more than twenty five years.
(3) If the concerned village or municipality does not repay the loan received from the Government of Nepal or the loan taken as a guarantee by the Government of Nepal within the prescribed period, the Government of Nepal will deduct the amount from the grant provided to such rural municipality or municipality to receive or repay the loan.
(4) Other arrangements related to taking loans by rural municipalities and municipalities shall be in accordance with the federal law.