KSFE achieved the business target fixed in Vision 2010 document as on 27.02.10 , one month before the prescribed time. Our turnover now crossed the milestone figure of Rs.10,000 Crores. Thanks to the public of Kerala for investing their money as well as their goodfaith in the company.
Thanks to all for the glorious success of Pravasi Bandhu Chittikal, the consecutive 7th special chitty campaign which became a grand success.
Monday, March 22, 2010
Wednesday, December 23, 2009
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.
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.
Tuesday, October 13, 2009
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.
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.
Sunday, August 16, 2009
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)
Sunday, July 19, 2009
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.
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/
Wednesday, July 8, 2009
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
Tuesday, July 7, 2009
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
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