Rural Bank

RURAL
BANK
NATURE OF
RURAL BANKS
government-sponsored/assisted banks which are privately managed
and largely privately owned that provide credit facilities to farmers
and merchants, or to cooperatives of such farmers or merchants at
reasonable terms and in general, to the people of the rural
community. Micro, Small and Medium Enterprises(MSMEs).
FUNCTION OF
RURAL BANK
A rural bank may offer or perform any or all of the following
services:
1) Grant loans and make investments in accordance with existing

rules and regulations.
2) Accept savings and time deposits.
3) Sell domestic drafts.
4) Act as correspondent for other financial institutions.

5) Receive in custody funds, documents, and other valuable objects, and rent safety
deposit boxes for the safeguarding of such objects.
6) Act as financial agent, buy and sell, by order of and for the account of its customers,
shares, evidences of indebtedness and all types of securities.
7) Make collections and payments for the account of others and perform such other
services for its customers as are not incompatible with banking business.
SERVICES
Accept saving and time deposit
Act as trustee over estates or properties of farmers and merchants
Act as official depository of municipal, city or provincial funds in

the municipality, city or province where the bank is located
TYPES OF LOANS
PERSONAL LOANS- A personal loan is an amount of money you can
borrow to use for a variety of purposes.
HOME EQUITY LOANS-A home equity loan — also known as a second

mortgage, term loan or equity loan — is when a mortgage lender lets a
homeowner borrow money against the equity in his or her home. If you
haven’t already paid off your first mortgage, a home equity loan or second
mortgage is paid every month on top of the mortgage you already pay,
hence the name “second mortgage.”
CREDIT CARD CASH ADVANCES-A credit card cash advance is a withdrawal of cash from your
credit card account. Essentially, you’re borrowing against your credit card to put cash in your
pocket. However, there are costs to taking a credit card cash advance and, in some cases, limits on
the amount you can withdraw.
CREDIT CARDS- A credit card is a thin rectangular piece of plastic or metal issued by a bank or
financial services company, that allows cardholders to borrow funds with which to pay for goods
and services with merchants that accept cards for payment.
HOME EQUITY LINES OF CREDIT- A home equity line of credit, also known as a HELOC, is a
line of credit secured by your home that gives you a revolving credit line to use for large expenses
or to consolidate higher-interest rate debt on other loansFootnote1 such as credit cards. A HELOC
often has a lower interest rate than some other common types of loans, and the interest may be tax
deductible.
SMALL BUSINESS LOANS- Small business loans focus on providing funds for establishing or
growing a small business. Each loan program has different criteria it uses to identify a small
business.
TERMS OF LOANS
Provides that loans or advances extended by rural banks shall be primarily for the
purpose of
meeting the credit needs of farmers, fishermen and farm families. Such loans and
advances may be
secured by:
(1) Lands without Torrens Title where the owner of a private property can show (5)
years on more peaceful, continuous and uninterrupted possession in concept of
owner;
(2) Or of portions of friar land estates or other lands administered by Bureau of
Lands that are covered by sales contract and the purchase have paid at least five (5)
years installment;
(3) Or of homestead tax declarations or free patent lands, subject to certain
conditions. Loans and other credit accommodation may also be secured by farm
produce if the borrowers are mere tenants.
SPECIAL
FINANCING
Special financing is a segment of the auto lending industry for
borrowers with a limited or tainted credit history. Special financing
PROGRAM
in the auto finance industry is risk based, which means that the
terms of the loan are set so that the expected returns to the
lender/investor are great enough to cover the risk of default by the
borrower. Special financing loans typically carry a higher interest
rate than is available to borrowers with a clean credit history.
BORROWING
OPERATION
Loan operations are defined as the process of lending money by
banks, mortgage lenders, credit unions or other financial
institutions to those in need of additional funds--incurring debt by
the borrower. ... The borrower is required to repay the money with
interest.
EQUITY
INVESTMENT
What are Equity Investments?
Equity investments are nothing but buying into the stocks and shares of
companies.
TYPES OF
EQUITY
• Individual Stocks
• Equity Funds
INVESTMENT
• Private Equity Investment
INDIVIDUAL STOCKS
When one invests in an individual stock, he or she is purchasing ownership. If an
individual invested in 100 shares of a public company, that individual would have a
percentage of ownership in that company.
EQUITY FUNDS
Equity funds are those mutual funds that primarily invest in stocks. You invest your money in the fund
via SIP or lumpsum which then invests it in various equity stocks on your behalf. The consequent
gains or losses accrued in the portfolio affect your fund's Net Asset Value (NAV). An investor is able
to enjoy the benefits of diversification and cover a wider base of equity investments.
Active & Passive Funds

• Passive funds seek to replicate the index while active funds are very aggressive. The fund manager
has to actively keep on altering the contents of the portfolio to ensure a return higher than the
benchmark.
Growth, Income & Hybrid Funds

• Growth funds invest into stocks with high capital appreciation potential. Income funds generally
invest into large cap companies which are relatively stable and pay dividends on a regular basis.
Market Capitalization
• Is the aggregate valuation of the company based on its current share price and the total number of
outstanding stocks.
PRIVATE EQUITY
INVESTMENT
Is money that is invested in a company by purchasing shares of that company in the stock market.
Venture Capital
• It Is a form of private equity and a type of financing that investors provide to startup companies
Growth Capital
• It is an increase in the value of an asset or investment over time.
Real Estate Funds

• These are private equity funds with real estate and properties as the main underlying. They are
involved in acquisition, development, and maintenance of real assets.
MEMBERS
PACIS, SAMNIEL JOY O.
DE GUZMAN, PATRISHA MAECY P.
RADAZA, MARIFE A
DE LA PAZ, JELAICA R.
PAJARILLO, ANDREA RAIN G.
PACALDO, SONNY C.

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RURAL

1) Grant loans and make investments in accordance with existing

2) Accept savings and time deposits.

3) Sell domestic drafts.

4) Act as correspondent for other financial institutions.

Act as trustee over estates or properties of farmers and merchants

Act as official depository of municipal, city or provincial funds in

HOME EQUITY LOANS-A home equity loan — also known as a second

Active & Passive Funds

Growth, Income & Hybrid Funds

Real Estate Funds

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