Advantages of Having Rural Banks
Advantages of Having Rural Banks
Advantages of Having Rural Banks
Another advantage is that Rural Banks can even grant loans even if the
property used as collateral is not covered by a Torrens title provided that there is
showing that there is Open, Continuous, Exclusive, and Notorious possession for 5
years. This is something that a big bank will not enter into because there is no
security that the person owns the property. Hence, Rural Banks makes the loan
services more accessible.
A rural bank may even act as a trustee and be the one that administers or
manages properties of farmers and merchants. This means that rural banks also
have trust services afforded to farmers and merchants in order to help them to
manage their properties
Lastly, Rural Banks have lower initial deposits and have a higher interest
rates as compared to commercial banks. Lower initial deposits required is a
signification that Rural Banks can be easily availed of by individuals who have not
much money to deposit.