Chitty is a unique scheme incorporating the aspects of a recurring deposit and an advance scheme. In chitty, the subscriber has an opportunity to bid and avail of advance which amounts to a certain percentage of the total denomination of the chitty (sala), whereas in recurring deposit the advance can be availed only on the paid up amount. In case bidding is delayed due to draw of lots in the initial instalments, one can resort to availing of chitty loan, which is a loan that “bridges” the gap between the need of the subscriber for money and the delay in the chitty getting prized.

This is really a biased notion, born out of lack of first hand information regarding the range of securities accepted by KSFE and the actual case with which this can be offered. The KSFE accepts securities belonging, broadly, to four categories:

(1) Financial Document (2) Personal Surety
(3) Property Security (4) Gold Security

The first category consists of

  • Fixed deposits of KSFE and other institutions, covered by deposit insurance cover
  • NSC VIII issue, which is 4 years or more old from date of deposit
  • Kissan Vikas Patra
  • The surrender value of LIC policies
  • Paid up amount in Non-prized chitties of KSFE
  • Bank guarantee

The second category consists of employees belonging to Government of Kerala and Government of India Departments and Undertakings, Banks and other reputed Organisations and Professionals like Doctors, Chartered Accountants, etc. who have assessed income above a certain limit.

Self surety of an employee belonging to SREG/SRNEG will be accepted upto a liability limit of Rs.5,00,000/-

In case an employee under SREG/SRNEG category can bring another surety, either from SREG or SNREG, this security will be enough for a liability up to Rs.10,00,000/-.

The monthly salary of sureties belonging to Salary Recovery Enforceable Group (SREG) shall be not less than 10 % of the future liability and it should be 12.5% if the sureties are belonging to Salary Recovery Non-Enforceable Group (SRNEG). The total net pay of subscriber/surety together should cover gross monthly installment of chitty/loan.

Under the third category the document related to any, property that is situated in Kerala is admissible, can be accepted as security.

It will not be difficult for any one to offer one of the above categories hereby for a scheme. Moreover reforms are being effected to make the security norms more customer friendly.

This is a scheme where interest rates are most competitive at 12.00%(simple) and security norms are simple as in other schemes. CVL scheme can be availed to acquire consumer articles ranging from TVs to four wheelers. Unlike similar schemes of competitors the repayment period can be extended upto 60 months.

Housing Loan Scheme of KSFE is designed to cater to the needs of all segments of population such as Traders, NRIs, Business persons, Professionals, Salaried class etc. Rate of interest is competitive and the terms are simple. KSFE provides advance under this category for purchase of plots as well as purchase of dwelling house and for construction of dwelling houses.

Gold loan scheme of the KSFE is operated through the specialised Gold Loan counters with extended working hours upto 4.30p.m. in branches. The loan applications are disposed within a very short time and since the Gold Loan counters are given immense discretionary powers in relation to the decision making, granting the advance is made in a jiffy. Further, interest is charged for the actual number of days the gold is under pledge.

Under this scheme advance is extended for any purpose. After remittance of 10% of the instalments a subscriber will be eligible for advance of upto 50% of the sala of the chitty, subject to certain conditions. All securities accepted for chitties are acceptable for chitty loan also. The execution of the loan application is usually very fast, especially if the security belongs to financial documents or personal security category.

This is absolutely wrong. There may be rare instances of delay due to the failure in submitting sufficient security in time. Recent reforms brought about for the quick acceptance of securities and bringing in speed and flexibility will further expedite the processing of loan/chitty prize money payment applications and extending of advance/prize money payment in submitting sufficient security in time.

Complaints, regarding the deficiency in service at any of the KSFE branch, can be immediately taken up with the Branch Manager. If redressal of complaints is not effected at that level, the complaint can be escalated to the respective Regional Offices/Corporate Office.

The Corporate Office of KSFE is at Thrissur. KSFE has 16 Regional Offices viz.,

  • Alappuzha
  • Ernakulam Rural
  • Ernakulam Urban
  • Kannur
  • Kattappana
  • Kollam Rural
  • Kollam Urban
  • Kottayam
  • Kozhikode Rural
  • Kozhikode Urban
  • Malappuram
  • Palakkad
  • Pathanamthitta
  • Thiruvananthapuram Rural
  • Thiruvananthapuram Urban
  • Thrissur,

for coordinating and controlling the branches. A list of branches under each Regional Office is given in this Website elsewhere.

Yes. Now NRI’s can also join chitties offered by KSFE as per notification no. 227 dated 13/4/2015 in the gazette of government of India. For this, they may go through the various denominations of chitties offered by our various Branches and select the type for their requirement. Then they may download the chitty application form, which can be obtained from our website. Take the printout in duplicate and fill up the personal details called for in the last page of the application form. After putting signature on both forms, they may send them to the concerned branches. The address and phone number of branches are provided in our website. The amount for first installment may be transferred by the mode internet banking, money transfer service of WUMT/Xpress Money, for which KSFE has an agreement. The installment can also be remitted through online or directly in the branch in cash/cheque on behalf of the subscriber. 

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