(1) Government of Nepal can give loan to the state or local level.
(2) The province or local level may make a request to the ministry for a loan, specifying the use of the loan amount, the method of payment and the time limit.
(3) If the request received according to sub-section (2) is found reasonable, the Government of Nepal may approve the granting of the loan.
(4) According to sub-section (3), if there is approval from the government of Nepal to provide loans, the ministry will enter into an agreement with the relevant province or local level.
(5) If the province or local level does not repay the loan received from the government of Nepal within the period mentioned in the agreement, the government of Nepal can recover such loan amount from the subsidy provided to the respective province or local level.