HIGH RETURNS

SUPERIORITY OF KSFE CHITTY AS A CREDIT & INVESTMENT INSTRUMENT OVER OTHER FINANCIAL INSTRUMENTS : -
Better Returns to Investors.
Lowest Cost to borrowers.
Easy liquidity through advances under Pass Book Loan (PBL),...New Chitty Loan (NCL) schemes. CSDT- facility.
Investor protection through Chitty Act.
Public trust, credit worthiness and branch network.$ Door collection and service of agents.
Acceptance of gold as security and wide array of securities.
Convenient duration and subscription amount.
Easy and transparent operation & inter branch facility

Break even point in chitty - Interest v/s Discount foregone
Bidding Thump Rule :- No:1 [As a borrower]Bid the chitty at the maximum rate, since cost of chitty is always much less than the borrowing cost.No.2 [As an Investor] In the continuous bidding process, if the discount foregone/available on each month is less than or equal to the proportionate of the gross /maximum discount for the month, bid the ticket immediately and invest the proceeds in CSDT or other secured investment/deposits.
Tips :- I. Per unit (in % terms) of discount foregone correspond to interest earned on the prize money should be arrived to maximize the return from chitty. II. Discount forgone in auction should be suitably compensated with the interest/return earned by prize money receipt during the course of the chitty.* Cash flow based computation :- (for investors) Ex : - [ Rs 2000 X 50 months = sala (Rs) 100000]

i) If the chitty is auctioned at the 18th month \ instalment at a total discount of 11%. prize money payable is 100000-11000= Rs 89000.ii) Interest accrued on PM deposit for the balance period of (50-19) = 31 months @ 10%. Therefore total interest for Rs 89000 @ 10% for 31 months is = Rs 23733. Total prize money at the end of chitty Rs 89000. Total receipt/ inflow from chitty = 23733+ 89000 = Rs 112733 iii) If the total dividend earned is Rs 6000 during the entire chitty period, The net outflow of the chitty is Rs100000 - 6000 = Rs 94000.
IV) Net Surplus in chitty Rs 112733 - 94000 = 18733 iv) Annualised average return = Rs 18733 / 50 = Rs 375. v) Inflow based annual average return: 375/1625 *100 = 23% Annualised Return (%) = 375/2000* 100 = 18.75% (without considering reinvestment or compounding effect and returns is worked out on gross subscription amount instead of net investment/subscription).
Comparative result of a post-office R.D Scheme[ 5 year scheme (60 Months duration) at a monthly

investment of Rs 150]
Total contribution/ investment =150*60 = 9000
Total interest earned = 2227
Total inflow = 11227

Inflow based annual average return = 2227/60 = 37Annualized average Return % = 37 / 150 *100 = 24.5% Note:- Here the return is high since the matching investment period selected is lower in the case of chit scheme ie, we took only 50 months duration in chitty. If chitty duration is 60 months the return will further jump to a higher percentage level )
Ex:-II
i) If the chitty is auctioned at the 18th month/ instalment at a total discount of 5. 5% (including F. C), then the prize money payable is [Rs 100000 - 5500 = Rs 94500].
ii) Interest accrued on PM deposit for the balance period of [50-19] = 31 months. Therefore total interest for prize money for the balance duration of the chitty @ 10% is = Rs 24412.
iii) Total inflow from the chitty (i) + (ii) above = 94500 + 24412 = 118912.
iv) If the dividend earned in the chitty is very less ie, only to an extend of Rs 5000. Therefore, net outflow of the chitty is Rs 100000 - 5000 = 95000.
v) Net surplus in the chitty is (iii) - (iv) = Rs 118912 - Rs 95000 = Rs 23912.vi) Annualised average return in the chitty is 23912/50 = 478.
vii) Return (%) = 478/2000*100 = 23. 9%Chitty as a Loan Product. Cost of Chitty :- [Loan V/s Chitty]
i) Chitty Rs 2000 X 50 months = Rs 100000
ii) If the chitty is auctioned at maximum rate the cost is Rs 30000 for 50 months.Hence, annualized cost is = 30000/50*12=7200 = 7. 2 %
iii) If there is an auction discount of Rs 6000 accrued for the entire course of chitty .Net cost of chitty is = Rs 30000 - 6000 = 24000 Hence annualized cost /year = 24000/50000*12 = 5.76 %.
iv) Cost of funds will further come down, if duration of chitty is higher at 60 to 100 months duration. Hence, for long term borrowings chitty is most attractive/preferred source/route.
FINANCIAL AND INVESTMENT PLANNING THROUGH KSFE CHIITY.
Chitty can be used as a best medium of savings for all types of individuals, traders, business class, self- employed persons, etc and any desired asset/portfolio can be created within the duration of the chitty.
Chitty can be best used as a low-cost source of fund by all individuals, compared to any other source of funds/ loans in the debt market.
All future financial requirements / objectives can easily be planned and met through chitty.
Traders can use chit funds as the cheapest cost of funds for commercial use and net outflow in chitty is a deductible business expenditure as per Indian tax laws.
Chitty can be used as a medium of investment. The prize money can be utilized for other investment/productive purposes.
Effect of inflation will be almost zero in chitty as the corpus of the chitty is received back well before the termination date of the chitty compared to any other banking/financial products.
Tenure/duration and denomination is flexible in chitty scheme.
Enrollment in chitty of appropriate duration / time span ensures fulfilling each of the future financial needs/objective such as House Construction / acquiring immovable properties, vehicles, furniture, house-hold equipments, foreign tours, marriage of daughters, children's education, retirement planning, hospitalization/treatment cost etc.
Tax planning can be made through chitty.
* The calculations shown in this sheet are based on situations usually observed in the conduct of KSFE chitties. There can be variations under actual circumstances.

Sugama Deposit Scheme Advantages

What exactly is the nature of this scheme? Is it just another term deposit scheme?
No. This is not a term deposit scheme. This scheme is quite comparable to the Savings bank deposits in banks, but of course, with marked difference in interest rates. Whereas the maximum interest offered by banks for this scheme is 3.5%, KSFE is offering 5.5%. This is undoubtedly the best offer in the financial service sector, among the deposit schemes belonging to the SB a/c category.

KSFE Interest Rates

INTEREST RATES

Scheme Rate of Interest

New Chitty Loan Regular - 14.5% (simple)

Defaulter - 16.5% (simple)

Chitty Prize Money Advance 13% p.a. up to the 30th day

Pass Book Loan Regular - 13% (simple)

Defaulter - 15% (simple)

KSFE Announces Ponnona Chittikal 2009

In this age of economic recession, when majority of the investment options are proving to be a losing propositions, Chitties conducted by KSFE, a government owned company, have been attaining more importance and relevance. Needless to say, the trust of our customers is the main reason behind the success and growth of our institution. For the benefit of our customers, we have been introducing schemes, which would be of help to them and in this respect our company is second to none. We started branded chitty two years back with the sole aim of sharing a part of our profit with our esteemed customers. With this aim still in mind, we are introducing the third edition of our branded chitty under the title Ponnona Chittkal-2009 from 15th July 2009 to September 15th which coincides with the Onam,, the national festival of malayalees inside and outside Kerala.
It is a special Campaign consisting of a series of chitties of duration ranging from duration of 25 to 100 months and gross monthly remittances of Rs.1000/- to Rs. 1,00,000/-. So one can easily pick the most suitable and desirable one from the series, depending upon their financial back ground, financial needs and capacity for remittance. All the benefits of chitty, as a financial product, which are time-tested through ages, will be automatically available to any one by simply joining in the scheme. But besides the strong support of the financial product called chitty, Ponnona chittikal 2009 offers several other benefits to them. First of them are prizes determined through transparent draws.

Prize Scheme
* First Prize is a bumper prize of 7 Maruthi Alto cars at the State level for the selected members of a chitty. To regulate the distribution of prizes all over Kerala uniformly, it has already been decided that the draw will be such that one subsriber in each of the seven region of KSFE will get a car .
* The second prize consists of 5000 is more in number and spread, which ensures high probability of getting a prize of gold coin in every chitty /class with a duration of 50 months. Prizes will be increased to two if the duration of chitty/ class is more than 50 months. The winners will be determined through draws among subscribers at branch level at the time of first auction.

Other Benefits
The building up Ponnona chitties are such that it provides various options to the customers.

Loan Packages
* It has a built in mechanism which offers a multi purpose project wrapped under a single name Ponnona chittikal 2009. For example the following benefits can be availed by a customer by simply joining the Ponnona chittikal 2009. One can choose a loan scheme for marriage purpose, for building a residential home, to own a vehicle etc. The terms and conditions are too simple.
* More over a non prized chitty subscriber can avails a credit line of Rs. 1,00,000 or 50% of Sala , which ever is less , by the completion of first auction itself. The surety norms are too liberal to avail the above said loans.
* The prize- winner has the opportunity of earning higher interest in the event of the prize money getting deposited with the Company.
In the unfortunate event of the accidental death of a prized subscriber, the Company, as a gesture of goodwill will write off future liability upto Rs one lakh.
These are some of the salient features of chitties being floated during the campaign period. By subscribing to KSFE schemes, a subscriber automatically participates in the on going development process of the State as the funds mobilized by the Company goes to the State Government coffers for carrying out various development activities. KSFE is a consistently profit making PSU, from the very beginning and is a synonym to the development of Kerala and Keralites, as its slogan says

"KSFE - The thump impression of the developing Kerala"

More Information Please visit : http://www.ksfe.com/

KSFE Registerd Office

REGISTERED OFFICE:THE KERALA STATE FINANCIAL ENTERPRISES LIMITED,BHADRATHA, MUSEUM ROAD,P.B. NO.510, THRISSUR – 680 020.

Phone Numbers: 2332255, 2332366, 2332466, 2332400, 2332259, 2337972, 2339235.Fax: 0487 – 2336232

E-mail : ksfeltd@sancharnet.in

KTDFC - Kerala Transport Development Finance Corporation Limited

KTDFC is a Kerala Government owned Non Banking Financial Company offers vehicle loan packages to both individuals and transport operators ranging from two wheelers to heavy commercial vehicles with low diminishing EMI rates. For More details Please Visit website : http://www.ktdfc.com

Web Site of Kerala Finance Minister

New web site of Kerala Finance Minister Dr. T. M. Thomas Isaac
http://www.minister-finance.kerala.gov.in

KSFE Sasthamangalam Branch New Chitties

Slno  Instalment Amount  Duration  Sala  Date of commencement

1 Rs. 100000 50 months 5000000 28-AUG-2009

2 Rs. 25000 40 months 1000000 28-AUG-2009

3 Rs. 10000 100 months 1000000 20-MAR-2010

4 Rs. 10000 30 months 300000 31-JUL-2009

5 Rs. 2500 40 months 100000 17-JUL-2009

6 Rs. 1000 100 months 100000 30-JUN-2009

KSFE Branches

THIRUVANANTHAPURAM

(Branches in alphabetic order)

ATTINGAL (11)

SRUTHI TOWERVAKKOM RASHEED ROAD,

ATTINGAL P.OPIN - 695 101

Phone : (0470) 2622375

E-mail : ksfetvm_011@dataone.in

ATTINGAL EVENING

(286)KRISHNA TOWERS,

PALACE ROADNEAR PRIVATE BUS STAND,

ATTINGAL P.O TVM - 695 101

Mob :9446006286

AZHOOR

(260)USHA BUILDINGPERINGUZHY,

THIRUVANANTHAPURAM

PIN - 695 305.

Phone : (0470) 2634156

E-mail : ksfetvm260@sancharnet.in

BALARAMAPURAM

(109)MOOKAMBIKA SHOPPING COMPLEXIInd FLOOR,

BALARAMAPURAM P.O

PIN - 695 501.

Phone : (0471) 2400656

E-mail : ksfetvm_109@dataone.in

CHALA (TVM) (130)

GEETHANJALI,

TC 38/2560 (2),

ARYASALA,

CHALAI.P.O.,

PIN - 695 036

Phone : (0471) 2471259

E-mail : ksfetvm130@sancharnet.in

CHIRAYINKIZHU (145)

MEDAYIL BUILDINGS,

1st FLOORVALIAKADA,

CHIRAYINKIZHU P.O.,

PIN - 695 304

Phone : (0470) 2640970

E-mail : ksfetvm145@sancharnet.in

FORT (TVM) (27)

RAJADHANI BUILDING,

EAST FORTTHIRUVANANTHAPURAM - 695 023.

Phone : (0471) 2479038

E-mail : ksfe027@dataone.in

KADAKKAVOOR (239)

SREE MURUGA COMPLEX

CHEKKALAVILAKOM JN,

KADAKKAVOOR P.O

TVPM-695 306,

Phone : (0470) 2659457

E-mail : ksfetvm239@gmail.com

KALLAMBALAM (217)

AL JAS PLAZA BUILDING,

P.O.KALLAMBALAM,

TRIVANDRUMPIN - 695 605,

Phone : (0470) 2692105

E-mail : ksfetvm_217@dataone.in

KALLARA (182)

N.N.BUILDINGS,

SREYAS JUNCTIONKALLARA P.O.,

PIN - 695 605

Phone: (0472) 2860816

E-mail :ksfe182kallara@gmail.com

KANJIRAMKULAM (187)

A.S.D. BUILDINGS,

NEAR POST OFFICEKANJIRAMKULAM P.O.,

PIN - 695 524,

Phone : (0471) 2260791

E-mail : ksfekjl187@dataone.in

KATTAKADA (185)

K.V. KANNAN COMPLEX

THIRUVANANTHAPURAM ROAD

KATTAKKADA,

PIN - 695 572.

Phone : (0471) 2291133

E-mail : bmksfeltd@bsnl.in

KAZHAKUTTOM (59)

ALATHARA COMPLEX,

KAZHAKUTTOMPIN - 695 582.

Phone : (0471) 2418363

E-mail : ksfetvm059@gmail.com

KESAVADASAPURAM (015)

A.K. TOWERS,

KESAVADASAPURAM, P.O.

Thiruvananthauram

TVPM - 695 004.

Phone : (0471) 2555832

E-mail : ksfekdpm15@sancharnet.in

KILIMANOOR (106)

S.N.V. BUILDING JUNCTION

KILIMANOOR P.O.

PIN - 695 601.

Phone : (0470) 2672074

E-mail : ksfetvm106@gmail.com

KODAPPANAKUNNU (275)

SREENIVAS BUILDING

CIVIL STATION ROAD

KODAPPANAKKUNNU P.O.

TVPM - 695043

Phone : (0471) 2732275

E-mail : ksfetvm275gmail.com

LOAN UNIT, TVM (96)

"NEW TRIDA CENTRE",

2nd FLOORMEDICAL COLLEGE P.O., TVPM

PIN - 695 011

Phone : (0471) 2448717

E-mail :ksfe096@dataone.in

MALAYINKIZHU (37)

K&K SHOPPING COMPLEX,

MALAYINKIL P.O.

NEAR PANCHAYAT OFFICE,

TVPM

PIN - 695 571,

Phone : (0471) 2282053

E-mail : ksfetvm037@dataone.in

MANACAUD (248)

TC.49/19,

KAMALALAYAM,

KAMALESWARAMMANACAUD.P.O

THIRUVANANTHAPURAM - 695 009

Phone :( 0471) 2459538

E-mail : ksfetvm_248@dataone.in

MANGALAPURAM (287)

P.N.M.ARCADE,

MANGALAPURAM,

THONNAKAL P.O.

THIRUVANANTHAPURAM - 695 317

MOB:9446006287

MEDICAL COLLEGE (TVM) (93)

"NEW TRIDA CENTRE",

2nd FLOOR MEDICAL COLLEGE P.O.,

THIRUVANANTHAPURAM.

PIN - 695 011

Phone : (0471) 2444723 E-mail : ksfe093@dataone.in

NEDUMANGAD (36)

RAJESWARI BUILDINGBANK JUNCTION,

PALAYAM,

NEDUMANGAD.

PIN - 695541

Phone : (0472) 2802411

E-mail :ksfetvm_036@dataone.in

NEYYATTINKARA I (16)

AKSHAYA SHOPPING COMPLEX

NEYYATTINKARA - 695 121.

Phone : (0471) 2222336

E-mail : ksfetvm_016@dataone.in

NEYYATTINKARA II (144)

S.N.D.P. UNION BUILDINGS

OPP. MUNICIPAL TOWN HALL

NEYYATTINKARA - 695 121.

Phone : (0471) 2222330

E-mail : ksfeney@dataone.in

PALODE (210)

M.K. BUILDINGS,

PALODEPERINGAMALA ROAD,

PACHA P.O.,

TVPM.PIN - 695 562,

Phone : (0472)

E-mail : ksfetvm210@sancharnet.in

PAPPANAMCODE (153)

IST FLOOR,

ABNTOWER,

PAPPANAMCODE

THIRUVANANTHAPURAM - 695 018.

Phone : (0471) 2490016

E-mail : ksfetvm_153@dataone.in

PARASSALA (156)

MANGALAM BUILDINGS,

NEAR GANDHI PARKPARASSALA P.O.

PIN - 695 502

Phone : (0471) 2203075

E-mail : ksfetvpm_156@bsnl.in

PEROORKADA (69)

VILAYIL BUILDINGS,

1st FLOORAMBALAMUKKU,

PEROORKADA, PIN - 695 005,

Phone : (0471) 2437245

E-mail : ksfetvm69@bsnl.in

PERUMKADAVILA (265)

T.T BUILDING,

PERUMKADAVILA P.O

NEYYATTINKARA,

THIRUVANANTHAPURAM

PIN - 695 124,

Phone : (0471) 2278030

E-mail : ksfeperumkadavila@dataone.in

PETTA (TVM) (112)

SENTINEN BUILDINGS,

PATTOOR JN.,

VACHIYOOR P.O.,

THIRUVANANTHAPURAM - 695 035.

Phone : (0471) 2470772

E-mail : ksfetvm_112@dataone.in

POOJAPPURA (138)

KURCHY'S BUILDINGS,

NEAR MANDAPAM,

POOJAPPURA

THIRUVANANTHAPURAM - 695 012

Phone : (0471) 2346108

E-mail : ksfe138@bsnl.in

POTHENCODE (139)

PLAZA BUILDINGS

POTHENCODE P.O

PIN - 695 584.

Phone : (0471) 2419631

E-mail :ksfepothencode@gmail.com

PRAVACHAMBALAM (280)

THULASI BHAVAN BUILDING

P.P.VIII/423,

PRAVACHAMBALAM JN,

THIRUVANANTHAPURAM - 695 020

Phone : (0471) 239192

SASTHAMANGALAM (202)

SHARMEES TOWERS,

SASTHAMANGALAM,

TVPM - 695 010.

Phone : (0471) 2720676

E-mail : ksfetvm_202@dataone.in

SREEKARIYAM (123)

KADAYARA COMPLEX,

SREEKARIYAM P.O.,

THIRUVANANTHAPURAM - 695 017

Phone : (0471) 2597003

E-mail :ksfetvm12@bsnl.in

STATUE (TVM EVENING I) (163)

KSFE SILVER JUBILEE BUILDINGS

STATUE JN.,

GENERAL HOSPITAL ROAD

THIRUVANANTHAPURAM - 695 001

Phone : (0471) 2476671

E-mail : ksfetvm_163@dataone.in

THAMPANOOR (TVM EVG. II) (219)

KOSALAM,

NEAR DESABHIMANIDHARMALAYAM ROAD,

OPP. AYURVEDA COLLEGE

TVM-695001

Phone : (0471) 2338910

E-mail : ksfe_eve@dataone.in

TVM MAIN (2)

HOUSING BOARD BUILDING

SANTHI NAGAR

THIRUVANANTHAPURAM - 695 001

Phone : (0471) 2330217

E-mail : ksfetvm_002@dataone.in

UDIYANKULANGARA (194)

APARNA BUILDING,

UDIYANKULANGARA

AMARAVILA P.O.,

PIN - 695 122

Phone : (0471) 2231661

E-mail : ksfetvm194@sancharnet.in

VARKALA (29)

GOPAL BUILDING,

OVERBRIDGE ROAD

MYTHANAM,

VARKALA P.O.,

PIN - 695 141.

Phone : (0470) 2602445

E-mail : ksfetvm_029@dataone.in

VATTAPPARA(289)

VATTAPPARAP.O,

THIRUVANANTHAPURAM - 695 028

Mob :9446006289

VATTIYOORKAVU (244)

RUGMINI ARCADE,

ARAPPURA ROAD

VATTIYOORKAVU,

THIRUVANANTHAPURAMPIN - 695 013,

Phone : (0471) 2369684

E-mail : ksfetvm_0244@bsnl.in

VAZHUTHACAUD (94)

CENTRE PLAZA BUILDING,

1st FLOOR VAZHUTHACAUD,

THIRUVANANTHAPURAM

PIN - 695 014,

Phone : (0471) 2327381

E-mail : ksfe_tvm094@dataone.in

VELLANAD (141)

MANNUVEETTIL SHOPPING COMPLEXFLOOR

VELLANADU JN,

VELLANAD P.O.

THIRUVANANTHAPURAM-695543

E-mail :ksfetvpm142@bsnl.in

PH:0470 2602445

VELLARADA (107)

SAKTHI BUILDING,

(1st FLOOR)PANACHAMOODU P.O.,

PIN - 695 505.

Phone : (0471) 2242299

E-mail : ksfetvm107@sancharnet.in

VENJARAMOOD (84)

ANDAVAR BUILDING,

VENJARAMOODU

PIN - 695 607.

Phone : (0472) 2872120

E-mail :andavar084@dataone.in

VIKAS BHAVAN (247)

T.C.11/46,

PMG JN.

VIKAS BHAVAN POST,

TVPM-33

Phone : (0471) 2317584

E-mail : ksfepmg@hotmail.com

VITHURA (125)

N.N. ARCADE,

KALUNGU JUNCTION

VITHURA,

PIN - 695 551.

Phone : (0472) 2856515

E-mail : ksfevithura125@gmail.com

VIZHINJAM (44)

PANCHAYATH BUILDING,

VIZHINJAM JN.,

PIN - 695 521.

Phone : (0471) 2480254

E-mail : ksfetvm_044@dataone.in

Golbal Slowdown May Delay Smart City Project

Chief Minister V.S. Achuthanandan Wednesday said the global economic slowdown may delay the launch of Smart City project. The proposed project, to be jointly launched by the state government and the Dubai-based infrastructure major Smart City, is slated to come up on a 246-acre plot with 8.8 million square feet of built-up space, of which 70 percent is earmarked for IT and IT-enabled services.

Financial Crisis affects Kerala Tourism

Kerala State earns ($2.17 Bn) from Foreign tourists annually. Due to financial crisis there is a mass drop in the earnings. Kerala will concentrate more on domestic tourism. State Government has taken adequate steps to overcome this situation.

Venture Fund for industries

Kerala Finance Minister T M Thomas Isaac announces in assembly to start Venture Fund for industries with Rupees 100. This will attract small and medium industries to start in Kerala.

In view of the global economic slump, the government would introduce special ''loan package'' for Rs 500 crore to safeguard small and medium industries, he said adding the scheme would be implemented through the Kerala Financial Corporation.

Kerala State Fiancial Enterprises Ltd (KSFE)

KSFE is one of the leading financial investment sector undertaking by Government of Kerala
They are offering the following services

• Chitty

A chitty is basically a contract between the foreman and the Subscribers.As per the contract, each subscriber agrees to remit a fixed amount of money every month for a number of months.

• Chitty Loan

Chitty Loan is a bridge between your actual financial need and the delay in chitty getting prized in your favour When am I eligible for a chitty loan? If you are a non-prized subscriber in a chitty and remitted 10% of the total number of instalments promptly, you are eligible for an advance up to 50% of the total chitty amount or sala (gross subscription to be remitted per month multiplied by the number of instalments in the Chitty). In the case of 100 months chitties, the maximum loan amount will be 30% of the sala.
How are the Principal and the interest of the Chitty loan settled? The principal of the advance is settled by adjustment from the Chitty prize money and the interest has to be remitted every month.What is the interest rate? The interest rate of the advance is 14.5% (simple) and for defaulted accounts 16.5%.

• Consumer Vehicle Loan (CVL)

KSFE CVL Scheme helps you in acquiring white articles, vehicles etc., which you have always dreamed of owningAvailable for The articles for which CVL is made available include all consumer durable articles including computers, motor vehicles -two & four wheelers, certain durable medical equipments for clinics, agricultural equipments/ appliances etc.Security Acceptable Types of security acceptable for chitty prize money are acceptable in the case of CVL also.Interest Rate 13.5% (simple) is the interest rate applicable and for defaulted accounts 15.5%(simple) .Duration The duration of the advance is between 12 months and 60 months.

• Reliable Customer Loan

How can I be considered to be eligible for the advance? If you have been customer of KSFE, with a good track record, for one year or more, you are eligible for the advance. What is the maximum amount of advance?The maximum amount of advance is Rs.1,00,000/- on personal security, and property security and Rs.5,00,000/- on financial documents security.
What is the maximum duration of the advance? The maximum duration of advance is 48 months.What is the interest rate?The interest rate is 12% (yearly diminishing) and for defaulted accounts 18% p.a.

• Gold Loan Scheme

For what purposes can I avail of this advance facility? This facility is for meeting any type of contingent requirements, thus harnessing the yellow metal, which is usually a “non-sweating” asset, for productive purposes.What is the duration of the advance?The advance is for a duration of six months. But it can be renewed, if necessary, upto an aggregate period of 24 months by remitting interest in every six months.What is the interest rate?The interest rate is 12% per annum (simple) to a loan upto and including Rs5000/-.Interest rate for loans above Rs 5000/- and upto & including Rs 25000/- is 12.5% per annum(simple).Interest rate for a loan of above Rs 25000/- is 13% per annum(simple).
What is the maximum amount of loan?Maximum amount of loan is Rs.3-lakhs. What is the special feature of this loan?The special feature for this loan is that the interest is charged for the actual number of days for which the gold is pledged, subject to the condition that minimum interest of Rs.25/- will be charged for an advance exceeding Rs.5000/-.

• Passbook loan

A non-prized chitty subscriber, without any default in remittances of instalments, are eligible for a passbook loan, the ceiling of which is based on certain discounts from the paid up amount in the respective chitty.No security is required. No security, other than the passbook is required for the advance. Interest rate?The interest rate is 13% (simple) and for defaulted accounts 15%.

• Trade Finance

Purpose: An advance for the small-scale traders to enhance their working capital.Limit:Upto Rs.1-lakhsEligibility: The applicant should have a small-scale trading venture. The proof for the same such as license from the local body, lease deed etc. has to be produced. The Manager concerned will conduct a site inspection to ascertain the location and holding of stock-in-trade.
Interest Rate: 13.5% p.a.(simple) and for defaulted accounts 15.5% (simple)Repayment Perod:12-months to 60-months.Security:As in the case of Chitty.

• Housing Finance

This finance is available for :

1. Building your dream house
2. Purchase of house plots
3. Outright purchase of house/flat
4. Renovation of existing house
   

Am I eligible for the advance?

You are eligible for the advance if you belong to one of the following categories:Salaried PersonProfessionals like doctors, engineers, chartered accountants, lawyers etc.Businessmen who are income tax assessees.Non-resident Indians.Persons earning rental income.

What is the maximum duration of the advance?

You will have to repay the principal, along with the interest, within a maximum period of 180 months (i.e, 15 years).

What is the maximum advance that I can obtain?

The amount of advance is limited to such amount, the corresponding monthly instalments of which does not exceed 45% of your monthly income.

What is the interest rate of the advance?

Amount & Period Interest rate

Rs.5 lakhs and below 10.25%p.a (Yearly Diminishing)

Above Rs.5 lakhs and upto 10 lakhs 10.50% p.a (Yearly Diminishing)

What are the securities acceptable for availing of the advance?·

For the purchase of plot, the advance will be limited to 75% of the documented value of the plot. In the case of outright purchase of plot and house, the advance will be limited to 75% of the documented value of the plot and house. For house construction, the advance amount will be limited to 75% of the estimated value of the house to be constructed.The land and/or house, as the case may be, will be the security for the advance.

• Sugama Deposit Scheme

What exactly is the nature of this scheme?

Is it just another term deposit scheme? No. This is not a term deposit scheme. This scheme is quite comparable to the Savings bank deposits in banks, but of course, with marked difference in interest rates. Whereas the maximum interest offered by banks for this scheme is 3.5%, KSFE is offering 5.5%. This is undoubtedly the best offer in the financial service sector, among the deposit schemes belonging to the SB a/c category.

• Fixed Deposit

Is it like any other fixed scheme?
Yes and No. Yes, because it has many features of the FDs in banks. No, because the returns are comparatively higher and because the effective returns are really higher than the published interest rates, because of monthly payment of interest (in the case of all other institutions, the interest is paid quarterly).

What will be my returns?

The annual interest rate in case of deposits from the public is 10% per annum.Interest for chitty prize money deposits upto Rs 1 lakh is also 10% per annum.Interest for chitty prize money deposit for Rs 1 lakh and above is 10.25% per annum.Due to the monthly payment of interest, the effective rate will be higher than this rate. Senior citizen will get 10.5% for fresh deposits as well as for prize money deposits.

What advantage can I expect by way of returns, when compared to FDs of other reputed financial institutions?
The returns are much higher than that offered by any reputed financial institution, the highest interest rate offered by nationalized and scheduled banks
Loan facility
Normally 75% of the fixed deposit amount can be availed as loan. This facility is called Fixed Deposit Loan. In exceptional cases loan upto 90% can be sanctioned by the branch manager using discretionary power. Interest for the loan is 2% above the rate of interest on Fixed Deposit.
Fixed Deposit is accepted as security for loan/advance schemes of the company.

Pravasi Bandhu Chittikal 2008

The current scenario of Kerala , shows that the very life of this state is run by the cash flow from the non resident Keralites. The number of this group is increasing day by day.
Last year we have introduced a new scheme, to honor the contributions of this non-resident Keralites group , under the title of Pravasi bandhu chittikal. It primarily targeted the family members, relatives and friends of NRK's residing inside Kerala and helped the NRK's to fulfill their dreams in their native land. It was a grand success, by the active participations of the relatives of NRK's and collected far more than the target fixed.
Now we have introduced a new edition of Pravasi Bandhu Chitties, under the title Pravasi Bandhu Chittikal 2008, from 1st November 2008 , the fifty second birth anniversary of Kerala State. The significance of the date selected closely depicting the commitment of KSFE to the NRK's so that they are the inevitable part of Kerala though they live most of the days outside the state physically. Their dreams , sprit etc., all are vested inside the land.
It is a special scheme consisting of a series of chitties ranging the monthly remittance from 25 to 100 months. So one can easily pick the desirable one from the series, depending upon their financial back ground and repaying capacity. The whole benefits of chitty, as a financial product , tested by the heritage of many years, will be automatically reached them by simply joining in the scheme. But besides the strong support of the financial product called chitty, Pravasi bandhu chitties, 2008 offers certain more benefits to them. First of them are prizes inbuilt.
Prize Scheme

Three types of prize schemes are attached with pravasi bandhu chittikal 2008. First , a bumper prize of 10 Maruthi Alto cars at the State level for the selected members. To regulate the distribution of prizes all over Kerala uniformly, it has already decided that the draw will be such that each of the five region of KSFE will get 2 cars.
The second prize is good in number, 100 air tickets to Dubai with the additional facility of returning. Actually this is intending for 50 families, in a view that , the air voyage can be made a joyful one with one additional family member.
The third one is more penetrative which ensure the probability of getting prize in every chitties. In every chitty the selected 3 subscribers will get a chance to receive gold coins with the first auction of the chitty.

Other benefits
The building up of Pravsai Bandhu chitties are such that it provides various options to the customers. It has a built in mechanism which offers a multi purpose project wrapped under a single name Pravasi Bandhu chittikal 2008. For example the following benefits can be availed by a customer by simply joining in the Pravsai Bandhu chittikal. One can choose a loan scheme for marriage purpose, for building a residential home, to own a vehicle etc. The terms and conditions are too simple.
More over one non prized chitty subscriber can avails a credit line of Rs. 1,00,000 or 50% of Sala , which ever is less , by the completion of first auction itself. The surety norms are too liberal to avail the above said loans.
If the prize money is deposited in the company, the fixed deposit will get more interest than ordinary deposit.
Since an uncertainty factor pertains within the course of life of every person, we have introduced a liability waiver scheme to absorb the shock of uncertainty factor. According to this liability waiver scheme, in case a prized subscriber who meets with unfortunate death in an accident, the company will write off the future liability or rupees one lakh which ever is less.
Yes, we are just highlighting only a few advantages of a great product. After all by joining in KSFE schemes, means participating in an on going process of development of our state, since one part of the income of KSFE directly goes to the State Govt.. KSFE a profit running PSU, from the very beginning and is a synonym to the development of Kerala and Keralites, as its slogan says "KSFE-The thump impression of the developing Kerala".

For More details Please visit http://www.ksfe.com/