Combined Security
A subscriber/loanee is allowed to offer one or more types of acceptable security at a time, in combination, subject to certain rules and regulations.
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…
Gold Security
Gold ornaments can be accepted as security towards future liablity in all schemes.
Property Security
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…
NRI Deposits
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.
Kissan Vikas Patra
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…
National Savings Certificates VIII Issue
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…
Pass Book of Non-prized Chitties of KSFE
The Passbook of non-prized chitties can be accepted as security for the future liability of schemes.
Bank Guarantee
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.
L.I.C. Policy
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…