21. ¹[(1) No loan shall be made unless it is fully secured by a mortgage, hypothecation or assignment of the land and the house to be constructed, repaired, purchased or remodeled thereon or by such other immovable or movable property of the borrower or of his surety or of both as may be prescribed :

Provided that where the land on which the house is proposed to construct, repair or remodel, is held by the borrower not as owner but as lessee or in any other legal capacity, then, notwithstanding anything to the contrary contained in any other law for the time being in force, loan may be made against the security of such land and the house to be constructed, repaired, purchased and remodeled thereon.

(2) All loans shall be made in suitable installments concomitant with the construction, repair or remodel of the house or in one installment for purchasing flats or apartments.]

(3) No property shall be accepted as security unless it is free from all encumbrances and charges, and it shall be one of the terms upon which the loan shall be made that the property and the house in respect of which the loan is made shall not be sold or charged without the prior approval of the Corporation ²[and any sale, transfer made or charge or encumbrance created without the approval of the Corporation in respect of such property shall be null and void].

³[(4) Notwithstanding anything contained in clause (3), the Corporation may, subject to the maximum limit fixed by Government, from time to time, grant additional loans to any borrower on the security of any property already mortgaged with the Corporation, and offered by the borrower and accepted by the Corporation as security for the purpose.

(5) No loan shall be made to any borrower unless he or, where the borrower is more than one person, any one or more of such persons is a member of a registered Housing Society, or unless the borrower satisfies the Corporation that the terms upon which he had acquired the land on which the house was to be constructed, repaired, purchased or remodeled, or the terms of the lease under which the land was made available were satisfactory and that the area in which the house was to be situated had been adequately planned.

(6) No loan shall be made unless the Corporation is satisfied-

(a) that the borrower will be able to provide the necessary funds which to be added to the loan made by the Corporation, that cover the entire cost of the construction, repairing, purchasing or remodeling of the house;

(b) that the borrower or his surety or both as the case may be and where the borrower is more than one person, any one or more of such persons or their sureties, will have sufficient means to repay the loan during the prescribed period in the prescribed manner; and

(c) that adequate care has been taken to ensure that the house would be of an economical and suitable design and of a sound construction, and of a type which would assure a minimum of practicable expenditure for repairs and maintenance during the term of the loan.].

(7) Before accepting any movable or immovable property as security, due allowance shall be made for depreciation and probable fall in value and whenever such property is found to fall in value below the margin allowed, additional security shall be obtained.

(8) The loan shall be repayable in monthly instalments sufficient to cover the principal and the interest in such manner as may be prescribed.

(9) No loan shall be given for a period exceeding ⁴[32] years.

(10) The rate of interest chargeable on loans made by the Corporation shall be determined by the Government from time to time.

(11) Every agreement between the borrower and the Corporation shall provide for the period within which the construction, repairing or remodelling of the house shall be commenced and completed.

(12) No information given by any person applying for financial assistance and communicated to any of the Directors or employees of the Corporation shall be disclosed by or used by such Directors or employees except for the lawful purposes of the Corporation without the written consent of such person.

(13) No loan shall be given to any ⁵[borrower unless he] conforms to such conditions as may be prescribed.