Every loan granted to an industry shall, subject to the provisions of section 8, be secured by a mortgage or a floating charge upon the property of the industry subject to any encumbrances existing at the time when the loan is granted and of such collateral security, if any, as the State Government may require.



Explanation-For the purposes of this section the expression "property of an industry" shall not include raw materials acquired for the purposes of finished goods produced by or the stock in trade or other floating assets of the industry.