SECURITIES GENERALLY ACCEPTED BY THE KSFE
The Kerala State Financial Enterprises
offers financial assistance under various Schemes. These schemes
are listed below:
Flexy Trade Loan
Pass Book Loan
Fixed Deposit Loan
In addition to the above, the Chitty Scheme,
which is the backbone of the Company, has an advance aspect built
into it. The payment of prize money in chitties is actually an
advance given to the subscriber by the Company.
under all the above mentioned schemes can be made only against security
of one type or the other, so as to ensure the repayment of the advance,
along with interest. Thus in the context of KSFE advances,
or for that matter; in the context of advances by any other institutions,
securities can be defined as follows:
such as salary recovery undertaking, landed property, deposit
receipts, etc., that is deposited or pledged as a guarantee for
the fulfillment of an undertaking regarding the repayment of an
advance, along with interest thereon, to be forfeited in case
various types of securities accepted by the KSFE for
its different schemes are the following:
SALARY AND MINIMUM SALARY
a) “salary” for this purpose include
Basic pay plus D.A. (Dearness Allowance) and adhoc DA/increase and
P.P (Personal Pay), if any.
b) “Minimum Salary"
full-time permanent employees who are drawing a minimum net-salary
of Rs.5000/- will be accepted as sureties/guarantors.
CLASSIFICATION OF SURETIES
a) “SREG” (Salary Recovery Enforceable
“SRNEG (Salary Recovery Non-Enforceable Group)
3. Salary Requirement Norms
a) SREG employees:The SREG surety
(s)/guarantor(s) offered should have a minimum/combined salary of
10% of the future liability.
b) SRNEG employees:
The SRNEG surety(s)/guarantor(s) offered should have a minimum/combined
salary of 12.5% of the future liability.
Combination of Sureties/guarantors
When SREG employee and SRNEG employee are jointly offered as sureties/
guarantors they should have a combined minimum salary of 12.5% of
the future liability.
Sureties should be permanent residents of and working in Kerala
(b) They should be permanent/ officiating full time employees.
(c) The sureties should have at least 6 months service left
for retirement after the termination of the period of liability.
SREG and SRNEG employees who are chitty subscribers/Loanees can
avail of the facility of self surety/guarantee, up to a liability
of Rs.2,00,000/- in all schemes, with minimum net-salary of Rs.5000/-
on the condition that total recovery of the applicant doesnot
exceed 60% including the monthly gross instalment amount of the
chitty/loan/advance applied for. However for future liability
upto Rs.3,00,000/- ,personal surety is accepted on the basis of
salary certificate as well as marks as per score card.
surety is accepted in all the schemes:
Upto a liability of Rs. 200,000/- if the principal debtor is unemployed,
provided the surety is from SREG with minimum net-salary of Rs.5000/-.on
the condition that total recovery of the surety doesnot exceed
60% including the monthly gross instalment of the chitty/loan/advance
Upto a liability of Rs.500000/-, where the principal debtor is
from SREG, provided both the principal debtor and surety have
separate minimum net-salary of Rs.5000/-.on the condition that
total recovery of the principal debtor doesnot exceed 60% including
the monthly gross instalment of the chitty/loan/advance applied
Notable Features related to Surety Norms
provision to accept professionals on par with SRNEG in case of
those having a taxable annual income of Rs.1 lakh and above.
provision to consider employed couples (including professionals),
having a combined taxable annual income of not less than Rs.2
lakhs, as sufficient security for an advance/future liability
equal to their annual income, subject to a maximum advance/future
liability of Rs.3 lakhs.
provision to accept post dated cheques as additional security
from professionals in the capacity of hirer/subscriber, where
no other collateral security/additional personal surety is offered
by the hirer. The period of advance should not exceed 36 months.
The number of cheques required and their periodicity will be fixed
by the Manager.
The provision to allow conversion of an amount equal to the future
liability of the chitty from prize money as Deposit-in-Trust of
the company, treating the same as security towards future liability.
deposits with Nationalised Banks, Scheduled Banks, District Co-operative
Banks, Co-operative Banks or any other Banks, having deposit insurance
coverage and fixed deposits with KSFE. Ltd., either
in the name of the subscriber/applicant or in the name of another
person will be accepted as security for all our schemes.
Term deposits with KSFE. Ltd., either in the name
of the subscriber/applicant or in the name of another person
will be accepted as security for all our schemes.
Policies, the surrender value of which, are equal to the future
liability of the loan/chitty can be accepted as security. The
LIC policy accepted as security in such cases can be in the name
of applicant/subscriber or in the name of spouse or in the name
of any other person. In such cases the policy should be assigned
in favour of the company and the policy holder should be a co-bounden
in the agreement.
Securities and Bank Guarantee can be accepted as valid security.
The Bank Guarantee should cover an amount equal to one instalment
more than the future liability. Also it should be valid for a
period not less than three months after the termination of the
BOOK OF NON-PRIZED CHITTIES
The Passbook of non-prized chitties can be accepted as security
for the future liability of schemes. The paid up gross subscription
minus full Foreman’s Commission is the paid up value.
paid up value should be sufficient to cover the future instalments
in the scheme together with interest on the future instalments
up to the date of termination of the pledged non-prized chitty.
NATIONAL SAVINGS CERTIFICATE (VIII ISSUE)
will be accepted as valid security, on the following conditions:
the time of acceptance, the issue price (face value) of the NSC’s
(VIII issue), should cover the future liability, ie. principal
plus interest in case of advances and sum total of future instalments
in the case of chitties. The interest for the loan amount is to
be calculated till the maturity of the instrument or the remaining
period of loan, whichever is longer.
prescribed by the Post Office are used for noting the lien.
future liability for which Kisan Vikas Patra can be accepted as
security is determined as follows:
1. In case the Kissan Vikas Patra is offered as security before
the expiry of 30 months after the issue of the same, the certificate
will be accepted for a future liability not exceeding 75% of the
value of the certificate (i.e, purchase price).
If the Kissan Vikas Patra is offered as security after 30 months
(i.e, expiry of lock in period) of the issue of the same, the
certificate will be accepted as security for future liability
worth the premature closure value of the certificate on the date
of acceptance of the same as security.
The NRI, NRO, FCNR and NRNR deposits can be accepted as security
to our various schemes, provided.
a) The deposit receipts are properly discharged and company’s
lien noted on it.
The Bank, in which the deposit is kept, agrees to close it and
make required payment to KSFE. even before
maturity, on demand.
security inside the State of Kerala can be accepted as security,
provided the title of the owner over the property is clear. The
following documents will have to be presented while submitting
property as security.
Deeds and prior documents in original (for the past 13 years)
certificate for the past 13 years
Tax Receipt for the current year
Tax Receipt, if there is a building on the property.
and enjoyment certificate
Certificate and Sketch of the property.
ornaments can be accepted as security towards future liablity
in all schemes. 1gm of gold (18carat) will cover a future liability
of Rs.1800/-, 1gm of 19 carat & above will cover Rs.2050/-.
In exceptional cases & BIS hallmarked gold ornaments will
be accepted upto Rs.2150/- per gm. There is provision for partial
redemption if 25% or more of original amount seccured is remitted
XI. SUGAMA SECURITY
Outstanding balance in Sugama account can be accepted as security
for future liability in chitty/loan schemes. The deposit amount
should at least cover the future liability. For the balance in
Sugama Security account, interest @ 5.5% will be allowed. Monthly
instalment can be adjusted from the account. The main advantage
of the scheme is that the customer can release his documents pledged
and also earn interest on the amount outstanding in this account.
A subscriber/loanee is allowed to offer one or more types of acceptable
security at a time, in combination, subject to certain rules and
for our Schemes
of future liability (instalments to be remitted) in the case
of SREG, 12.5% of future liability in the case of SRNEG and
of loan amount in case of SREG, 12.5% of future liability in
the case of SRNEG and SREG/SRNEG combination
of future liability (Advance + Finance charge) in the case of
SREG, 12.5% of future liability in the case of SRNEG and SREG/SRNEG
of loan amount of SREG sureties.
amount to be secured under RCL will be the future liability
i.e. principal plus interest. There are no separate security
security norms in vogue are applicable. However mutual surety will
not be accepted. In the case of immovable property immovable property
valuation is half times of the market value..
applicant should execute a loan agreement on stamp paper worth
Rs.100/- in the prescribed format.