Chitty Schemes

Security documents accepted by KSFE

In today’s world, everyone searching for different ways for financial stability and investment options for a better future. Kerala State Financial Enterprises (KSFE) Chitty, a popular savings scheme in Kerala. Offers different types of financial services. KSFE chitty was a popular financial product. The reason for the popularity is because of the range of securities accepted by KSFE from the subscribers. In this article, we are discussing all the details of the security documents accepted by KSFE.

Understanding KSFE Chitty

Let’s take a moment to understand about ksfe chitty and how it is works. KSFE is a Kerala state government-owned financial institute. Chitty schemes include savings, borrowing, and investing. This makes people as a most attractive schemes

The basic working of KSFE is that a group of individuals also known as chittals, come together and form a group. These chaittals contribute a fixed amount of money for starting the chitty scheme. The contribution period depends on the chitty tenure and the amount varies in each month. The amount depends on the bidding and auction deduction.

Types of Security documents accepted by KSFE

KSFE will ask to submit securities when anyone gets the prizemoney. Once the individual or chittal produces the security document then only the prize will be credited to the bank account of the subscribers.Following are the prizemoney accepted by KSFE.

1. Security documents accepted by KSFE : Personal Surety

Acceptance of Personal Surety: KSFE Chitty accepts personal surety for future liabilities up to ₹18 lakhs.

  1. Eligibility for Sureties: Employees of Central/State/Quasi-Government Departments/Undertakings, employees of Government/Aided schools, Plus two schools, colleges, and employees of Nationalized/Scheduled Banks, and certain Co-operative institutions are generally accepted as sureties (conditions apply).
  2. Salary Inclusion: The definition of “salary” includes Basic pay plus D.A.
  3. Minimum Salary Requirement: Only permanent employees drawing a minimum net-salary of ₹5000/- are eligible as sureties/guarantors.
  4. Classification of Sureties:
    • SREG (Salary Recovery Enforceable Group): SREG sureties should have a minimum/combined salary of 10% of the future liability.
    • SRNEG (Salary Recovery Non-Enforceable Group): SRNEG sureties should have a minimum/combined salary of 12.5% of the future liability.
  5. Combination of Sureties/Guarantors: When SREG and SRNEG employees are jointly offered as sureties/guarantors, they should have a combined minimum salary of 12.5% of the future liability.
  6. General Conditions for Sureties:
    • Sureties permanent address should be in kerala.
    • They should be permanent/officiating full-time employees.
    • The sureties should have at least 6 months of service left for retirement after the termination of the period of liability.
  7. Self Surety Option:
    • SREG and SRNEG employees self-surety/guarantee, up to a liability of ₹5,00,000/- in all schemes.
    • The minimum net-salary requirement for self-surety is ₹5000/-.
    • The total recovery of the applicant, including the monthly gross installment amount of the chitty/loan/advance applied for, should not exceed 60%.
  8. Single Surety Option: Single surety is accepted in all the schemes under the following conditions:
    • Up to a liability of ₹5,00,000/- if the principal debtor is unemployed, provided the surety is from SREG with a minimum net-salary of ₹5000/-.
    • Up to a liability of ₹10,00,000/-, where the principal debtor is from SREG, provided both the principal debtor and surety have separate minimum net-salary of ₹5000/-.

    2. FD of KSFE and Other Bank Deposits : ‘

    1. Fixed Deposits with Various Banks: KSFE Chitty accepts fixed deposits held with Nationalised Banks, Scheduled Banks, District Co-operative Banks, Co-operative Banks, or any other Banks that have deposit insurance coverage.
    2. Fixed Deposits with KSFE Ltd.: Fixed deposits with KSFE Ltd., whether in the name of the subscriber/applicant or in the name of another person, are also accepted as security for all KSFE Chitty schemes.

    3. Sugama Security Deposit

    4. LIC policy

    5. Bank Guarantee

    6. Property Security

    7. Gold Security


    Being a financial institution, those who have received the chitty prize money have to repay it. It is necessary for the existence of this institution. That is why there is a need to provide such security documents. Before starting a chitty contact with the branch manager and confirm the security documents that you produce is enough to claim the prize money .

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