ASKED QUESTIONS (FAQs)
ABOUT K.S.F.E. AND ITS SCHEMES
1. What are the main attractions
of enrolling in KSFE Chitties over enrolment in other savings
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.
I hear that the security norms of KSFE for various schemes
are rigid and cumbersome. Is it true?
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:
Financial Document (2) Personal surety
security and (4) Gold Security
first category consists of
Ų 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
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
surety of an employee belonging to SREG/SRNEG will be accepted upto
a liability limit of Rs.50000/-
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/-.
case an employee under SRNEG catagory can bring another surety
from SREG catagory, this security will be enough for a liability
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.
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
the third category the document related to any, property that
is situated in a prime location is admissible, can be accepted
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.
What are the advantages of the Consumer/Vehicle Loan Scheme of KSFE
over similar schemes of other institutions?
is a scheme where interest rates are most competitive at 15%(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.
What are the advantages of the Housing Finance Scheme of KSFE
over similar schemes of other institutions?
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
What are the main attractions of Gold Loan Scheme of the KSFE
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 250- 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.
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 15% (simple).
7. What are the attractions of
Reliable Customer Loan Scheme?
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.10,00,000/- 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 13% (yearly
I hear that the granting of chitty prize money and advance will
involve delay in KSFE?
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
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.
How is the line of control over branches structured?
The Corporate Office of KSFE is at Thrissur. It
has seven Regional Offices at
i) Thiruvananthapuram ii) Kollam iii) Kottayam
iv) Ernakulam v) Thrissur vi) Kozhikode and
vii) Kannur for coordinating and controlling the branches.
A list of branches under each Regional Office is given in this