Section 26C - Power of credit institutions to vary certain agreements - Interest-tax Act, 1974

Power of credit institutions to vary certain agreements. 26C. Notwithstanding anything contained in any agreement under which any term loan has been sanctioned by the credit institution before the 1st day of October, 1991, it shall be lawful for the credit institution to vary the agreement so as to increase the rate of interest stipulated therein to the extent to which such institution is liable to pay the interest-tax under this Act in relation to the amount of interest on the terms loan which is due to the credit institution. Explanation.— For the purposes of this section, “term loan” means a loan which is not repayable on demand.