Let’s proceed on the assumption that you’re taking out an individual construction loan. Such loans, which can be tough to get without a previous banking history because of the lack of collateral (a finished home), have special guidelines and include monitoring to ensure timely completion so your repayment can begin promptly.
Construction loans are typically short term with a maximum of 10 year, and have variable rates that move up and down with the prime rate.
- Help farmers and traders to access to finance against underlying assets
- Connectivity to market segments such as Futures, Spot and Auction
- Electronic and Centralized Record Keeping.
- Standardization & Accountability of warehouse receipts issued by warehouses.
- Common mechanism to establish and record liens created by FIs.
- Increase efficiency and transparency of the agricultural value chain.
- Reduction of TAT for FIs for commodity based lending