Personal Surety
Personal surety allows individuals with a strong financial standing to act as sureties for future liabilities up to ₹18 lakhs in various KSFE schemes. This includes employees of government departments, public sector undertakings, educational institutions, nationalized banks, and select cooperative organizations.
More about personal surety
Personal sureties must meet specific salary requirements and eligibility criteria to be considered as securities for various KSFE schemes.
Salary and Minimum Salary
- For the purpose of this policy, “salary” includes basic pay, dearness allowance (DA), ad hoc DA/increase, and personal pay (PP), if applicable.
- Only permanent employees who are drawing a minimum net salary of ₹5,000/- will be accepted as sureties/guarantors.
Classification of Sureties
- SREG employees: The SREG surety(s)/guarantor(s) offered should have a minimum/combined salary of 10% of the future liability.
- 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 and SRNEG employees are jointly offered as sureties, their combined minimum salary must be 12.5% of the future liability.
Surety Requirements
- Sureties must be permanent residents of Kerala State and employed full-time.
- Sureties must have at least six months of service remaining after the end of the liability period.
Self-Surety for Chitty Subscribers/Loanees
- SREG and SRNEG employees who are chitty subscribers or loanees can utilise self-surety as a guarantee for loans up to ₹5,00,000/- across all schemes. This is subject to a minimum net salary of ₹5,000/- and a total recovery limit of 60%, including the monthly gross instalment amount.
- For future chitty liabilities exceeding ₹6,00,000/-, personal surety will be accepted based on salary certificates and scorecard marks.
Single Surety
- A single surety is accepted for loans up to ₹5,00,000/- if the principal debtor is unemployed and the surety is an SREG employee with a minimum net salary of ₹5,000/-. The total recovery from the surety should not exceed 60%, including the monthly gross installment amount.
- For loans up to ₹10,00,000/-, both the principal debtor and the surety must be SREG employees with separate minimum net salaries of ₹5,000/-. The total recovery from the principal debtor should not exceed 60%, including the monthly gross instalment amount.