(1) A Zilla Parishad may, subject to the provisions of any law relating to the raising of loans by local authorities for the time being in force, raise from time to time, with the approval of the Government, loans for the purpose of the Act and create a sinking fund for the repayment of such loans.
     (2) Notwithstanding anything contained in sub-section (1) a Zilla Parishad may borrow money from the Government or, with the previous sanction, of the Government, from banks or other financial institutions, for furtherance of its objective on the basis of specific scheme as may be drawn up by the Zilla Parishad for the purpose.