NATIONAL MORTGAGE, FINANCING AND GUARANTEE SCHEME ACT - 1976 (SMCD 23)

    Section - 12 - Payment of the Loan.

    (1) In the case of a loan which has been granted for the purchase of an existing house, repayment of principal and payment of interest shall, unless otherwise agreed between the borrower and the financial institution commence one month after the date of the drawing on the loan amount.

    (2) In the case of a loan which has been granted for the purpose of building a new dwelling house, repayment of principal and payment of interest shall, unless otherwise agreed between the borrower and the financial institution, commence nine months after the date of the first drawing on the loan or two months after completion of the construction of the dwelling house whichever is earlier:

    Provided that notwithstanding anything in this subsection interest shall, in a case to which this subsection applies, accrue on any part of the loan released for the purpose of building the house from the day of such release and such interest shall be paid at such time, in such instalments and in such manner as may be agreed between the financial institution and the Borrower.