Chitty is the main product of KSFE.
It is a unique financial product, which blends the advantages of both investment and advance. It is a risk free safe haven for the public as KSFE conducts only chitties fully governed by the provisions of Central Chit Fund Act 1982. The installment per month for chitties range from Rs. 1,000 to Rs. 5,00,000 and the usual duration of chitties are 30 months, 40 months, 50 months, 60 months and 100 months.
The total of the periodic subscription, called the chitty amount, will be given out as “prize money” to the person who bids by allowing for the maximum reduction in the prize money. The maximum reduction possible is 25% as per the prevailing Chitty Act and if there are more than one subscriber interested in bidding at 25% reduction, the numbers of the such bidders will be put to a draw.
Thus each subscriber gets an opportunity to receive the prize money once during the tenure of the chitty. All the promoters have to contribute the periodic subscription till the end of the chitty.
Now KSFE opens a new provision for the NRIs to join our chitty. KSFE NRI Chitties are specifically designed for the NRI community. For more information on NRI chitty, please visit www.pravasi.kerala.gov.in
Now with KSFE Pravasi Chitties, you can contribute to the development of the State. Wondering how? The Large scale migration of Malayalees, majorily to the Gulf region has played a major role in Kerala’s Economy. A Kerala government survey showed that remittances sent by the diaspora support at least 50 lakh people in the state, which has a population of 3.15 crores. Rs.10,000 crores out of a total of Rs.50,000 crores for various developmental activities for the next five years of the state are expected to be raised through NRI chitties. In this way, you can secure your hard earned money and become part of our society’s developmental endeavor. KSFE Pravasi Chitty is specifically designed for Keralites working or settled abroad. A long pending demand for a NRI Chitty has been realized with the recent approval of RBI. After all, it is our responsibility to serve you better.
KSFE cares for you!
We offer Insurance coverage and pension schemes. In case of failure in the remittance of chitty installments due to accident, death or permanent disability, KSFE will take care of the remaining payment through insurance coverage facility. There is also a provision for the subscriber to link the chitty with pension fund/scheme.
KIIFB is the technical partner of KSFE Pravasi Chitties.
What is KIIFB?
KIIFB is a government institution to mobilize funds for the long-term developmental projects of the State government. NRI Chitties is considered to be one of the major sources of revenue for KIIFB. Another major advantage of KIIFB is that it allows the investors/subscribers to be part of the development of the state without any financial liability.
Best available technologies
Each step of the chitty is simplified by enabling online banking facilities along with specially designed mobile app. Through online facilities, anybody from anywhere in the world can take part in the chitty activities very easily. Procedures such as membership, payment of monthly subscription and participating in auctions can be done via online facilities. A 24*7 grievance Redressal virtual office operates at Infopark.
How to apply?
You can apply online from anywhere in the world by uploading copy of VISA/passport. ( പ്രവാസി ചിട്ടി )
The installment can be remitted via online gateways or using the KSFE Mobile App.
KSFE now facilitates easy participation in auctions from anywhere in the world using your Smartphone. The date and time of auction will be notified in advance.
Availing Prize money
Prize money can be availed by submitting any of the documents listed below as security.
- Property security
- Personal security
- Bank guarantee
- Gold security
- Insurance policy
Relatives of NRIs who is a resident of Kerala can be nominated for the power of attorney. The nominated person shall complete the procedure from any KSFE branch in Kerala.
Customer satisfaction is the priority
KSFE has worked over the years towards perfecting the services offered. NRI chitty is one of the recent chitty schemes introduced by the institution. This innovative chitty is very much designed to meet the needs of NRIs. With the help of latest technologies, chitty procedures are now made simple and manageable.
KSFE aims at your financial security along with growth of the society.
Passbook loan facility of KSFE is available to up to date non-prized chitty subscribers, provided that the subscriber has made no default in the remittance of installment. No security, other than the passbook is required to avail this facility. The rate of interest is 12.50% for simple accounts and 14.50% for defaulted accounts.
What is a Chitty?
The word ‘Chit,’ suggests the origin of Chit Funds. ‘Chit’ means a written note on a small piece of paper. The Malayalam equal for the word ‘chitty,’ is ‘Kuri,’ which has been derived from ‘Kurippu’ (which means a piece of writing or script). The ‘Chitty’ or ‘Kuri’ is derived, the root being the ‘lot.’ The foreman writes the name of each subscriber on a small piece of paper and fold it several times with the name inside to decide the prize-winner. He calls it the ‘Kuri’ or ‘Chit’ or ‘Narukku’ and in other ways, one ‘Narukku’ also means one member.
The Chits or Kuri’es are put in a vessel, all folded and mixed well and a person is called upon to pick one Chit from the vessel. The Chit is opened, the name read out, and the member declared as prize-winner. The prized Chit is removed from the vessel, and the proceedings repeated, at the next installment. The Chit or Kuri thus plays a crucial role in the allotment of the prize amounts.
According to the Chit Funds Act of 1982, the Government of India defines a “chit” as, “… means a transaction whether called chit, chit fund, chitty, kuri or by any other name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or a certain quantity of grain instead) by way of periodical instalments over a definite period and that each such subscriber shall, in his turn, as determined by lot or by auction of by tender or in such other manner as may be specified in the chit agreement, be entitled to the prize amount.”
Or in simple words, a chitty is a contract between the foreman and the Subscribers. As per the contract, each subscriber agrees to remit a fixed amount of money every month for some months.