Banking services made easy for real estate investors; ICICI Bank with new system

ICICI Bank has launched ‘Stack’ for companies operating in the real estate sector. STACK (ICICI STACK) offers a single window system for all banking needs of real estate stakeholders like Builders, Real Estate Investment Trusts (REIT), Alternative Investment Funds (AIF).

In a statement, ICICI Bank said Stack for Real Estate is the first initiative to offer banking needs to builders such as digital opening of bank accounts, instant generation of account numbers for RERA registration, construction finance and inventory. Depending on the stage of a project, STACK offers services like funding, lease rental discount to meet their financial needs.

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The stack also enables them to efficiently manage payment obligations to vendors, employees, utility providers and statutory payments. For REITs and AIFs, STACK also provides digital collection, settlement, surplus distribution and custodial services. REITs are trusts that manage portfolios of high-quality real estate properties. AIFs invest in privately allocated funds across various asset classes, including the real estate sector.

The real estate sector is the second largest employment generating sector in India. It is also the fastest growing sector in the economy. The sector’s contribution to GDP will increase from 7 percent to 13 percent by 2025. Builders, REITs and AIFs, major players in the real estate sector, are poised to play a major role in this expansion. Hence, they need a banking partner. A banking partner should cater to their needs and provide solutions to their entire ecosystem.

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ICICI STACK KEY OFFERS

Digital Bank Account Opening: Stack builders are offered the facility of opening accounts like designated RERA account, escrow account for project lending, current account for routine expenditure management.

Loans: The bank offers a range of loans to builders throughout their project lifecycle, including construction financing, inventory funding, lease rental discounting (LRD) facility. Besides, the bank also provides facilities like overdraft, letter of credit, bank guarantee to builders to increase financial and operational efficiency.

Digital Convenience : The bank offers builders a customized solution to digitally collect and easily process refunds for various projects at the pre-launch stage.

Payment Options: Stack offers tailored solutions for making bulk, statutory payments. It helps builders pay salaries to employees, clear utility bills and make payments to contractors or vendors. Also, builders can make legal payments for TDS, GST, Custom Duty, Employees Provident Fund/ Employees State Insurance through digital channels seamlessly.

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Custom Mortgage Loans: Stack is also a one-stop shop for mortgage loans for home buyers. The bank offers customized home loan solutions to retail buyers for project purposes. Stack provides loan against property (LAP) and home overdraft facility.

Digital Solutions for FDI and Foreign Exchange: The bank also offers a digital workflow for builders, REITs and AIFs to convert FDI funds into Indian rupees and submit required regulatory documents quickly through its CIB platform.

Services to REITs and AIFs: The Bank offers various services to REITs and AIFs. The bank offers a digital collection solution to enable them to collect funds and rent. It facilitates settlement at project, rent, service investor – level respectively.

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