The Kerala State Financial Enterprises Ltd.

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.

2. I hear that the security norms of KSFE for various schemes are rigid and cumbersome. Is it true?

This is really a false 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:

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.50000/-

In case an employee under SREG catagory can bring another surety, either from SREG or SNREG, this security will be enough for a liability upto Rs.1,50,000/-.

In case an employee under SRNEG catagory can bring another surety from SREG catagory, this security will be enough for a liability upto Rs.1,00,000/-.

For future liability exceeding Rs.50,000/-, aggregate monthly salary of sureties belonging to Salary Recovery Enforceable Group (SREG) shall be not less than 12.5% of the future liability and it should be 15% if the sureties are belonging to Salary Recovery Non-Enforceable Group (SRNEG).However the combined net salary of all the sureties together should be at least 40% of their combined gross salary after considering the deduction of the monthly instalment of the loan/advance applied for. However, this condition is not applicable to chitty prize money payments.

Professionals, whose income is Rs.1 lakh or more in a year (as per Income Tax returns) will be accepted as sureties under Salary Recovery Non-Enforceable Group.

Under the third category the document related to any, property that is situated in a prime location 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.

3. What are the advantages of the Consumer/Vehicle Loan Scheme of KSFE over similar schemes of other institutions?

This is a scheme where interest rates are most competitive at 12%(diminishing) 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.

4. What are the advantages of the Housing Finance Scheme of KSFE over similar schemes of other institutions?

Unlike other institutions, the Housing Finance 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. The interest rate is competitive and the terms are simple. Moreover Green Channel systems have been introduced to expedite the completion of the formalities of the scheme. KSFE provides advance under this category for purchase of plots as well as purchase of dwelling house and for construction of dwelling houses.

5. What are the main attractions of Gold Loan Scheme of the KSFE ?

The Gold loan scheme of the KSFE is operated through the specialised Gold Loan counters with extended working hours upto 4.30p.m. in more than 150- 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 about the suitability of the loan applicant for granting the advance is made in a jiffy. Further interest is charged for the actual number of days the gold is under pledge.

6.     What are main attractions of Chitty Loan Scheme?

Under this scheme advance is extended for any purpose. Any person offering adequate security is eligible for advance upto Rs.50,000/- immediately after the registration of the   chitty. 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. The interest rate is most competitive, at 12% (diminishing)

7.     What are the attractions of Reliable Customer Loan Scheme?

Any person who is a customer, with a good track record, in any of   the KSFE schemes for 1 year can avail of an advance upto Rs.1,00,000/- on personal security, Rs.3,00,000/- on property security and Rs.5,00,000/- on financial documents security under this scheme. Also employees belonging to SREG category and who do not have a track record of chronic default can avail of this scheme. The interest rate is competitive at 10% (yearly diminishing)

8.     I hear that the granting of chitty prize money and advance will involve delay in KSFE?

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.

9. Is there a system of redressal of complaints, if I have any?

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

10. How is the line of control over branches structured?

The Corporate Office of KSFE is at Thrissur. It has five Regional Offices at

i) Thiruvananthapuram ii) Kollam iii) Ernakulam iv) Thrissur and v) Kozhikode for coordinating and controlling the branches. A list of branches under each Regional Office is given in this Website elsewhere.