KSFE at a glance

The Kerala State Financial Enterprises Limited, popularly known as KSFE,

  • Is a Miscellaneous Non-Banking Finance Company,
  • Is fully owned by the Government of Kerala.
  • Is one of the most profit-making public sector undertaking of the State.
  • Formed by the Government of Kerala with the objective of providing an alternative to the public from the private chit promoters in order to bring in social control over the chit fund business, so as to save the public from the clutches of unscrupulous fly-by-night chit fund operators.
  • Has been registering impressive profits every year, without fail since its inception.

KSFE pays to the Government of Kerala crores of rupees every year by way of:

  • Guarantee Commission
  • Service Charges
  • Dividend


  • KSFE was created by the Government of Kerala on 6th November 1969.
  • The Paid up capital then was Rs. 2 Lakhs.
  • Total number of employees at the start was 45.
  • The number of branches KSFE began with was 10.
  • The Head Office of KSFE is placed in Thrissur, the hub of Chitty business in Kerala.


  • Paid up Capital is Rs. 100 Crores.
  • Total number of employees is 6782.
  • The number of branches is 600.
  • The number of customers is more than 33 Lakhs.
  • Our Turn Over as on Jun 2019 is 40839 Cr.



To become a significant player in the financial services sector by

  1. Providing a whole range of quality services and products.
  2. Adopting technology and benchmark standards in customer service and performance.
  3. Spreading our wings beyond the borders of Kerala, on a global level.
  4. Retaining the pre-eminent role in Chitty business.
  5. Continuing focus on extending resources to the Govt. of Kerala.
  6. Sustaining commitment to the weaker sections of society, as the neighbourhood institution for support, trust and security.


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 pravasi.ksfe.com

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 )

Payment method

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.

Loans & Advances:

Although Chitty is in essence a loan/advance scheme, for subscribers whose chitties are not getting prized and, at the same time they are in need of money, relief has been provided by two loan schemes built within the chitty scheme, viz. Chitty Pass Book Loan and Chitty Loan.KSFE offers other loan/advance schemes, comparable to those given by banks and other financial institutions, and the same includes:

What is Chitty Loan For?

Chitty Loan is a bridge between your actual financial need and the delay in chitty getting prized in your favour

When am I eligible for a chitty loan?

If you are a non-prized subscriber in a chitty and remitted 10% of the total number of instalments promptly, you are eligible for an advance up to 50% of the total chitty amount or sala (gross subscription to be remitted per month multiplied by the number of instalments in the Chitty).

What is the maximum amount of advance?

The maximum amount of advance is Rs.75,00,000/- under this category.

How are the Principal and the interest of the Chitty loan settled?

The principal of the advance is settled by adjustment from the Chitty prize money and the interest has to be remitted every month.

What is the interest rate?

Duration of Chitty is above 50 months and up to 120 months: 11.25% (simple) and for defaulted accounts 13.5%.
Duration of Chitty is 50 months or below 50 months 11.75% (simple) and for defaulted accounts 14%.

  • Purpose
    KSFE CVL Scheme helps you in acquiring white articles, vehicles etc., which you have always dreamed of owning
  • Available for
    The articles for which CVL is made available include all consumer durable articles including computers, motor vehicles -two & four wheelers, certain durable medical equipments for clinics, agricultural equipments / appliances etc.
  • What is the maximum amount of advance?
    The maximum amount of advance is Rs.30,00,000/- under this category.
  • Security Acceptable
    Types of security acceptable for chitty prize money are acceptable in the case of CVL also.
  • Interest Rate
    Regular – 12.00% p.a.(simple)
    Defaulter – 14.00% (simple).
  • Duration
    The duration of the advance is between 12 months and 60 months.


Purpose: The Scheme is intended to provide short term loans for people who are urgently in need of money, on the security of gold ornaments.

Loan Limit:  Maximum loan amount in this scheme is limited to Rupees 25 Lakhs per individual per day.

Interest Rate: Upto and including Rs.10,000/- 7.50% per annum(simple)
Rs. 10001 to Rs.20,000/- 8.75% per annum(simple)
Above Rs.20000/- and upto & including Rs.25,00,000/- 9.75% p.a. (simple)

Default rate 3 months to 6 months = 0.75%, 6 months to 9 months = 1%, 9 months to 1 year = 1.25%, above 1 year =1.5%. Minimum Interest Rs.25/- for loans above Rs.5000/-

Period of Loan: Maximum period of loan is 12 months.  Loanee can renew the loan for a further period of one year, after remitting the due interest and this facility can be availed up to 36 months.

Business Hours:  Gold loan counter will be open from 10.00 AM to 4.30 PM on all working days.

The scheme aims at providing loan for the purchase of gold ornaments for marriage purposes. All persons eligible to enter into a contract under the Indian Contract Act are eligible for the loan, provided the loanee has repaying capacity and produces security which is sufficient and acceptable to the Company as per the norms in vogue. As this loan is given only for marriage purposes, genuine proof of the same should be produced to the satisfaction of the company. The loanee will be given opportunity to purchase BIS. 916 Hallmarked gold ornaments from reputed jewelers who are approved by the Company on the basis of their application, and scrutiny and Goodwill of the Jewelers.

KSFE helps you build your dream home. KSFE Home Loan is also available for purchasing land for housing, renovation of existing house and for the outright purchase of house/flat. To avail this loan scheme, one must fulfill/meet any one of the following criteria: the applicant must be a salaried person, businessmen who are income tax assesses, NRIs, persons earning rental income or professionals like doctors/engineers/lawyers/chartered accountant. The principal is repayable within a period of 360 months (i.e, 30 years) or applicant’s attainment of 70 years of age, whichever is earlier.


Rs.10 lakhs & below: 8.5% (yearly diminishing)
Above Rs.10 lakhs 9.25% (yearly diminishing)
( Max. period 30 years or attainment of 70 years of age whichever is earlier)
[up to the fixation of EMI- 13.25%(simple)]
(Penal rate 18% on EMI)



Our customers are valuable for us. KSFE offers a loan scheme for the customers which allows the customer to take a maximum of Rs.25,00,000 (Rs.25 lakhs) as advance for a duration up to 72 months. KSFE personal loan can be availed by the customers of KSFE with a good track record of one year or more.

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 interest rate of the advance is 10.75% (simple) and for defaulted accounts 13.25% (simple)


Loan offered by KSFE for buying new cars. This loan can be availed by salaried persons having a net monthly pay exceeding Rs.10,000 and self-employed professionals/businessmen/income tax assessee having an average annual income more than Rs.2 lakhs for the last 3 years. The minimum period of loan is 6 months and the maximum is 60 months.

Rate of Interest :

12.00% Monthly diminishing
(Default Penal Int. 18% on EMI)


The objective of the scheme is to provide an overdraft facility to Government Employees, Employees of Public Sector undertakings and Aided Schools/Colleges up to a sum of Rs.50,000/- on the basis of their own salary certificate. In case of employed couples coming under above category, overdraft upto Rs.5,00,000/- can be availed.

The loanee shall open a Sugama (savings) Account with any of the Branches of his/her choice. He/She can deposit and withdraw any amount as in the case of normal Sugama Account. Whenever the account is overdrawn, interest will be charged @ 13.00%, only for the specific number of days and amount overdrawn. If the account shows a credit balance, the account holder is eligible for normal Sugama interest @ 5.5% on the basis of monthly minimum balance. The period of this overdraft facility is 36 months. It can be renewed subject to conditions.

With this scheme, the employees coming under the above category will be benefitted to meet any financial exigency at a low cost. Since the loanee has the option to withdraw the amount as per his/her requirement and as the interest is charged only to that extent, the loanee can save the cost of interest as far as possible.

KSFE Trade Finance is an advance to the small scale traders to enhance their working capital. The maximum finance limit for a trader is Rs.1 lakh. The scheme can be availed by producing valid proof to show that the applicant has a small-scale business venture. A site inspection will be conducted to verify the location and holding of stock-in-trade. The minimum period for the repayment of loan is 12 months and the maximum time limit is 60 months.



Deposit Schemes

A wide range of Deposit Schemes are offered by KSFE. List of deposit schemes available are,

The Sugama Security Scheme is intended for accepting amount outstanding in Sugama Deposits as security towards future liability in chitty and other schemes. The advantage under this scheme is that the advance will be secured and the monthly instalments can be adjusted from the account and at the same time the customers can enjoy interest income on the Sugama Deposit.

Sugama Security Account is to be opened in the name of the subscriber/loanee only either by depositing the future liability in cash or by transfer. No further remittance by any mode is allowed in this account. The deposit amount should atleast be the future liability. However, in the case of combined security the deposit amount can be limited to the shortage of security of chitty/loan amount.

Rate of interest will be the same as for Sugama Account. (Now 5.5%). The depositor can withdraw the interest accrued and credited to the account from time to time. He can withdraw the balance in the account after termination of the liability or on providing alternate security.


KSFE is collecting Short Term Deposits for periods ranging from 30 days to 364 days offering attractive rates of interest for different slabs. Individuals and Institutions can prefer this deposit for temporary parking of fund. When compared to Nationalised and Scheduled Banks, the rates of interest are much higher. Minimum amount that can be deposited under this scheme is Rs.5,000/-
Deposits in multiples of Rs.500/- will be accepted.

Short Term Deposits will be accepted as security to future liability in chitty and loan schemes of KSFE. On maturity these deposits can be renewed for a further period at the then existing rates. Provision is also there for premature closure of these deposits.


This scheme is specifically designed for the chitty subscribers, which allows the prized subscriber to deposit the prize money in full/part against future liability intending to withdraw the same on furnishing adequate alternate security or repayable on termination of the chitty, provided that the amount deposited under this scheme should not exceed the future liability in the chitty. The period of deposit is minimum 30 days from the opening of chitty and maximum till the date of termination of chitty.


KSFE lets you make fixed deposits with higher interest rates. Fixed deposit scheme offered by KSFE has many features similar to that of Fixed Deposits (FD) in banks. But the return offered by KSFE is comparatively higher than that of banks. The interest rate of deposits from the public is 6% per annum, chitty prize money deposit is 6.25% and for fresh deposits from senior citizens is 6.75%. The effective returns are higher than the published interest rates, because of monthly payment of interest.



One of the best deposit schemes offered by KSFE. Sugama Deposit Scheme, in its mode of action/procedure, is comparable to the Savings Bank deposits in banks, but with a higher interest rate. Sugama Scheme is the best in the savings account category as it is offering an interest rate of 5.5%, while the maximum interest offered by banks for this scheme is 3.5%. Sugama acts as a safe and sound transaction scheme for automated chitty installments payment, deposit interest withdrawals and day-to-day dealings.


There are two fee based services offered by KSFE namely,

Western Union Money Transfer

In order to provide money transfer services to the customers, KSFE joined hand with the international money transfer service provider, Western Union to act as their agent partner for providing money transfer services anywhere in the world. Money transfer can be done only from a foreign country to India. Transfers within the country and out of the country are not permitted under this scheme.

Xpress Money Transfer

This is the second venture of KSFE in the field of money transfer service, a fee based activity, joining hands with M/s UAE Exchange and Financial Services Limited. With this service, relatives of NRKs working abroad, especially in the Middle East will be able to get cash within minutes through our branches.

Customers have to bring in details of a valid ID proof such as passport, Voter’s ID, driving license, PAN card, Adhar card, NPR card, student ID (issued by Govt. colleges/schools), bank passbook with photo etc. In the case of foreigners, valid passport is the only acceptable ID.


This is the second venture of KSFE in the field of money transfer service, a fee based activity, joining hands with M/s UAE Exchange and Financial Services Limited. With this service, relatives of NRKs working abroad, especially in the Middle East will be able to get cash within minutes through our branches.

Customers have to bring in details of a valid ID proof such as passport, Voter’s ID, driving license, PAN card, Adhar card, NPR card, student ID (issued by Govt. colleges/schools), bank passbook with photo etc. In the case of foreigners, valid passport is the only acceptable ID.

KSFE introduced Safe Deposit Locker facility in some units in order to expand our range of services to the public. Lockers may be hired in the names of individuals, firms, companies, association of persons or clubs, trustees, NRIs, Govt. departments, co-operative societies and/or body of individuals. Lockers can also be opened in the name of minors duly represented by a guardian.

The rent of the locker is fixed at the rate of Rs.800 + tax for public and Rs.700+ tax for chitty subscribers, on yearly basis. Nomination facility is available for locker holders.


Various schemes of KSFE that offers financial assistance such as loans or advances can only be availed against the security provided by the customer. Security is defined as, “anything, such as salary recovery undertaking, landed property, deposit receipt 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 of default”. The various types of securities accepted by the KSFE for its different schemes are the following:

Personal security is accepted for future liability upto Rs.12-lakhs. Employees of Central/ State/ Quasi-Government Departments/ Undertakings, employees of Government / Aided schools/ Plus two schools, colleges and employees of Nationalised/ Scheduled Banks and certain Co-operative institutions are generally accepted (Conditions apply) as sureties by the Company for its various schemes.


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”

Only full-time permanent employees who are drawing a minimum net-salary of Rs.5000/- will be accepted as sureties/guarantors.


a) “SREG” (Salary Recovery Enforceable Group)

b) “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.

c) 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.

4. General Conditions.

(a) Sureties should be permanent residents of and working in Kerala State.

(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.4,00,000/- 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 of chitty, upto Rs.5,00,000/- ,personal surety is accepted on the basis of salary certificate as well as marks as per score card.


Single surety is accepted in all the schemes:

(a) Upto a liability of Rs. 4,00,000/- 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 applied for.

(b) Upto a liability of Rs.8,00,000/-, 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 for.


Fixed 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.

Short 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.

LIC 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.

Government 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 liability.

The Passbook of non-prized chitties can be accepted as security for the future liability of schemes.

NSC will be accepted as valid security, on the following conditions:

At 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.

Forms prescribed by the Post Office are used for noting the lien.

The 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).

2. 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.

b) The Bank, in which the deposit is kept, agrees to close it and make required payment to KSFE. even before maturity, on demand.

Property 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.

  • Title Deeds and prior documents in original (for the past 13 years)
  • Encumbrance certificate for the past 13 years
  • Land Tax Receipt for the current year
  • Building Tax Receipt, if there is a building on the property.
  • Possession and enjoyment certificate
  • Location Certificate and Sketch of the property.


Norms for our Schemes

a. Chitty 10% of future liability (instalments to be remitted) in the case of SREG, 12.5% of future liability in the case of SRNEG and SREG/SRNEG combination.
b. New Chitty Loan 10% of loan amount in case of SREG, 12.5% of future liability in the case of SRNEG and SREG/SRNEG combination
c. Consumer/ Vehicle Loan 10% of future liability (Advance + Finance charge) in the case of SREG, 12.5% of future liability in the case of SRNEG and SREG/SRNEG combination
d. Trade Financing Scheme 10% of loan amount of SREG sureties.
e. Reliable Customer Loan The amount to be secured under RCL will be the future liability i.e. principal plus interest. There are no separate security norms.


The 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..

The applicant should execute a loan agreement on stamp paper worth Rs.200/- in the prescribed format.