Thursday, August 6, 2009

Why Chitties, Why KSFE, and Why Attingal Evening branch?

We, at KSFE Attingal Evening branch, do not have any fancy claims (like mutual funds, insurance companies, and other wealth management firms do). We believe you are too intelligent to be fooled by such claims. What we offer is a simple investment scheme that can be used either as a loan or as a savings scheme. Sounds interesting? Read on.

Why Chitties?
Chitty is a traditional and indigenous financial instrument in Kerala. It is also known as kuri and has many formats (click here for a scholarly review of the chitty and kuri systems in Kerala). To put simply, a chitty scheme collects money from a set of people each month, and provides a lump sum to the neediest person of the group.

(The following illustration is given for the benefit of those who are new to chitties. Please skip the next two paragraphs if you understand the working of chitties.)

An example

Consider this example. Suppose 40 people have joined in a chitty for a monthly installment of Rs.2500/-. The total amount collected is Rs. 100,000/-. The chitty lasts for 40 months and one person gets the prize money each month. In the first month, suppose the person who wins the chitty (usually through a draw of lots) gets Rs. 70000/, that is a discount of Rs.30000/- (i.e., 30% of the total amount). From this Rs.30000/-, Rs.5000/- is taken as commission and Rs.25000/- is distributed equally among the members. In this case, it comes to Rs.625/- (=25000/40). So, the next month each member has to pay only Rs.1875/- (=2500 – 625).

This does not mean that a member has to pay only Rs.1875/- per month for the whole 40 months. At a later stage, say after 20 months, suppose the person who wins the chitty gets Rs.85000/- (usually through bidding; draw of lots is conducted only when at least two people are willing to opt for a discount of 30%). The discount in this case is Rs.15000/-, from which Rs.5000 is taken as commission and Rs.10000/- is equally distributed among members. In this case, it comes to Rs.250/- (yes, 10000/40). Each member has to pay Rs.2250/- (=2500 – 250). Hope it is clear. This is an example, and the scenarios vary for different patterns.

An even better illustration can be found here.

Some trivia

Now something to relieve the tedium of algebra. One of our customers recently made an interesting observation. If you put Rs.2500/- in a mutual fund, they will put about Rs. 1875/- in your account [please note that the amount is not correct in the present situation. He made this remark some time back, that too about a ULIP scheme]. On the other hand, if you give Rs.1875/- to KSFE, they will put Rs.2500/- in your account!

That's all fine; but how can one treat chitty as a loan?

Simple. By opting for a 30% discount and winning the chitty as early as possible. You get 70% of the total chitty amount within a few months of joining. If you calculate the total amount you have to pay at the end of chitty, it will be far less than a loan of the same amount plus its interest after full repayment.

What about chitty as a savings scheme?

For this, you have to bid relatively late. That does not mean that you have to wait until the last installment. You need to arrive at an amount that is profitable and bid for that amount. In the above example, suppose a person calculated Rs.90000/- as the optimum amount. Let us say, he or she got the prize money after 25 months and put it as an FD. The total amount the member will get at the end of the chitty will be far higher than the total amount he or she has to pay.

Hope it is clear. For any queries and clarifications, please leave a comment here or send an email to or


There are a number of chitty companies in Kerala. Why should one opt for KSFE? A clinching reason is the trust. The investment in KSFE is protected by Government of Kerala. The company has been functioning for nearly four decades now. No other chit company in Kerala can match us in terms of trust. Your money is in safe hands. Please do not take it as arrogance; but we won't catch cold even if the US economy sneezes. If you carry out a risk–reward analysis of investment, you can see that KSFE chitties provide an optimum balance.

The second reason is our social commitment. A major chunk of our profit goes to Government of Kerala, who utilizes it for carrying out development work, running public service organizations, and providing care for the less fortunate and privileged among us. The money you invest does not go to foreign countries, who use it for god-only-knows-what. Your money is used for the benefit of the people of Kerala. KSFE chitties help you to help yourselves as well as to help your fellow beings.

Why Attingal Evening Branch?

This one is the toughest and trickiest question. Let us state that there are no special privileges for Attingal Evening branch. Rules and regulations are same for all branches of KSFE. However, ours is a young branch and less crowded. It is the only evening branch in Chirayinkeezhu taluk. We function from 1 PM to 7 PM.

We know that this argument is not good enough to convince you about the benefits of Attingal Evening branch. But sometimes words do fail, particularly if the authors do not want to trumpet their own virtues much. Perhaps, you might understand the benefits when you see it by yourself. Please feel free to visit us. Our branch is conveniently located adjacent to Attingal private bus stand. lf you cannot make the trip, send an email to, or call (0)9446002081.

Thanks for reading patiently. Please feel free to comment.


  1. Thanks for this Post. I really found it remarkable knowledge sharing.

    But I have one qn: Suppose one does not bid at all for the complete period .. will it bring any benefit for him.

  2. Thanks for visiting, Bobby.

    About your question. There is no particular benefit for not bidding at all. Consider the example of 2500 x 40 = 1 lakh chitty. Even if you choose to avail the prize money at the last instalment, you will get only 95000 (that is, total chitty amount minus 5% foreman commission. In this case 100000 - 5000 = 95000). There is a chance that you might get the same amount (that is, Rs. 95000), much earlier. Realistically you can get the same amount by 30th instalment or one or two instalments later. If you are lucky and vigilant, you might get it earlier as well. That is when you happen to be the only person participating in the auction.

    Now, even if you do not have any particular need for the prize money, you can deposit the amount as a fixed deposit and get monthly or yearly interest.

    So, not bidding at all cannot be considered as a financially wise thing.

    We have to add that in KSFE chitties, it is not possible to not bid at all for the entire period. Suppose if no one comes to auction on particular month (which happens in every chitty towards the end of the chitty). We will select one of the non-prized customers who have remitted the installments correctly by draw of lots. The person will get the maximum amount, that is, total amount minus the commission (95000 in this example). Each month there has to be one winner. That is how chitty works.

    That means practically you cannot bid at all for the entire period. If you remit the instalments correctly, you will get the prize money before the end of the chitty.

    Hope it is clear.

    BTW, are you from Attingal or nearby?

  3. Really informative post! Is there a chitty scheme extended to NRIs? If yes, how can I bid sitting outside the country? And how will the money be remitted?

  4. Thanks for visiting, John

    We do have a chitty scheme for NRIs. That will start in October. The scheme is called Pravasibandhu chittikal. As you know very well, pravasibandhu in Malayalam means, well let us say, for the benefit of expatriates. It has several prizes, including gold coins, and flight tickets for two people to Dubai (with return tickets). The scheme will start on October only. R

    Right now another scheme is going on, called Ponnona chittikal. This scheme also has some attractive prizes, including gold coins and Maruthi Alto car. It lasts till October 5.

    Well, about remitting chitty amount from abroad, let me first say that KSFE has not yet developed facilities for online transaction. However, you can send cheques or drafts. You can get the monthly installment amount through e-mail. Many NRI have been sending cheques and drafts and the system normally works without any hitches.

    Bidding in the auction can also be done from abroad. It is not via online auction. There are two ways to do this.

    First you can make use of the proxy facility - that is, authorizing the branch manager to take part in the chitty on your behalf. You can specify an amount. For exmaple, in a chitty of one lakh, suppose you want Rs.90000/- as prize money. You can specify the amount Rs.10000/- in the proxy letter. The manager, or the person who conducts the auction, will call you on your behalf up to Rs.10000/-. Note that we will not disclose the proxy amount to anybody.

    The second option is to authorize a trusted relative or a friend to participate in the auction on your behalf. You need to just send the person with an authorization letter.

    Hope it is clear. Feel free to contact us if you have any more doubts.

  5. Nice informative post on the way Chitties function. But a doubt about the remark on Mutual Funds - you said if you put 2500 in MF, the amount invested will be between 1500 and 2000. Isn't that statement wrong? The entry load for mutual funds was 2.25% max and now it is even zero. That means the amount invested is between 2443.75 and 2500! And i do agree that the returns are risky in MFs.
    But my view is that Chitty and MFs are for two different purposes - and it is better not to compare one against the other.

  6. Thanks for the correction. Sorry for getting the figures wrong.

    In fact, a customer actually told us this thing. It happenned some time back. He was refferring to a ULIP scheme. I think at that time, the entry load and other charges were higher than what at present. Anyways, I have altered the text to eliminate the error.

  7. I have blogged on the same topic myself - and i have added your link as one of my references (and as a source of inspiration). A bit of number cruncing as well. Let me know if you have any comments.

  8. By the way, here is the link!

  9. Good work. The staff is to be awarded.
    However, i happen to know from the sbi nre application form that, for nris, the bank (sbi) will do the remittance of the chitty instalments for free, if requested, from the nre account. Hope other banks do the same.
    Jomon varghese, dammam, ksa

  10. That SBI is offering such a facility is news even to us! Thanks for visiting and informing.

    A person who has a bank account with any bank that supports NEFT facility can transfer money to our account. So, I think online payment of chitty instalments is possible now. One must get the bank account details of the KSFE branch for that.

    1. Can I know what would be KSFE Branch NEFT details of Thiruvalla Branch and what needs to be mentioned in the NEFT comments to identify that it is for our chitty account?

  11. Unbelievable! KSFE got blog? I am invsting chitties for so many years in another branch @TVM, fed up with old fashion service and missing of my cheques, etc; there is no online or E-Mail intimation as such too...
    (Any way KSFE people are much friendlier than that of nationalised bank/govt. employees)
    When other branches will become smart as yours?
    Good work keep it up!
    Rajesh NL

  12. Thanks for your compliment. Other branches will start blogs pretty soon. Not all branches of KSFE are computerized. Ours is a new branch. So, computerization process (data entry etc) were easier. Once all branches are computerized, I think you can find more blogs like this.

    BTW, you can make online payment through NEFT (no need for sending cheques). Our branch supports that facility. Please contact the manager of your branch.

  13. Hi,

    I read few months back in hindu that KSFE is planning to start their operations in bangalore, chennai, delhi & mumbai. Is this true .. if yes do you have any updates for me.

  14. Dear Prasad,

    Yes. There are proposals for expanding our operations outside the state. We are yet to receive further details. We shall try to collect details about it

    Thanks for visiting.

  15. When pravasibandhu chitti2010 will start?

  16. Pravasibandhu chitti scheme 2009-2010 is already over. Keep visiting these pages for updates about schemes and offers in future. But there never really is a bad time to join chitties.

  17. Ur email adress is not working ie,

  18. It's A case of mistyping (last digit, "6", misssing). You may also try the easier one:

    Thanks for asking.

  19. im residing in bangalore is it possible 4 me to join in KSFE chitty.if it is possible then what is is the procedure 4 that.

    Kindly give me valuable information

    Thank you

  20. Dear Lekha

    Please send a mail to or, mentioning your home address in Kerala. You will have to visit the branch at least once. Either at the time of joining or at the time of availing prize money. We can send you the application by email. You may take a print out, fill in the details, and send it to the brnach near your home town in Kerala. We shall send you the address of KSFE branch near your home town too.

    You can remit money through cheques or bank transfer.
    Thanks for visiting our blog

  21. Dear Sir

    As iam residing in bangalore i was not able to give the address for communication in kerala and my cousins are residing in is it possible for me to give there address.

    Thank you

  22. Lekha.

    That would be fine. But we always recommend joining chitties in the customer's own name. Starting a chitty in the name of a relative on behakf of you may be convenient. But there is always a matter of trust. It's up to you to decide. Hope you will be visiting Kerala occasionally. May be for Onam. You can join Poonnona chitty then.

  23. Dear Sir,

    I am an NRI,wanted to join in ksfe chitty. I am residing in chittur,palakkad. I would like to join a chitty for 10 lakhs or an nri scheme chitty. i would like to know the details or any other new scheme is there to join. i have enquired in chittur branch but i would like to know regarding the securities details also and whether from here itself i can join the chitty by filling the application and only during the time of calling the chitty i have to be there. pls reply regarding all these doubts and if any other suggestions pls let me know.

    Harish Menon

  24. Dear Harish Menon

    We have sent an email detailing the procedures. Please check your email. You can join the chitty from Dubai or any other foreign places. You need to come only at the time of availing the prize money.

    Thanks for commenting

    1. Hi..
      Can you please send me a copy of same mail to me as residing at chennai and would like top operate one chitty from Cheranellore Branch through my Proxy.
      Thankig you i advance.

  25. Dear KSFE,

    I have joined KSFE chitty in 2009 & I would like to bid for price money. How much time is required for KSFE to release the price money if bank garnatee is presented.


  26. Clean pps,

    The due date of releasing prize money of a chitty is the date of the next chitty auction or after 30 days, whichever is earlier. But if you provide sufficient security, we can release the prize money even the very next day. But a small interest is deducted from the prize money if you avail prize money earlier than the due date (13% annualized interest of the prize money for the number of days earlier than the due date).

    Thanks for coming

  27. Hi

    Is the price money is taxable by indian Tax law.

    Kindly Explain in details this is applicable for NRI's.

    Soju Koshy

  28. Dear Soju Koshy,

    We are not well-versed with income tax laws. Kindly check with a tax consult. But we do not know of anybody who pays income tax for chitty prize money.

    We certainly do not deduct income tax from chitty prize money. But there is service tax for all chitties. It comes to Rs. 375 for a chitty of Rs. 1,00,000/-. It is a charge levied by the government of India. It is not income tax, but service tax, just like what you pay along with telphone bills.


  29. Hi

    Thanks for Info.

    I have joined KSFE chitty in 2009 for 40*10000. I have completed 15 months. Can you advise which is best time to call for bid.

  30. Dear Soju Koshy,

    There are no hard and fast rules for bidding chitty. One customer once jokingly said that necessity is the mother of chitty bidding. (It sounds better in Malayalam: "ആവശ്യമാണ് ചിട്ടിയുടെ മാതാവ്‌".)

    One good habit is to attend the chitty auction every month. Even if you can't attend the auction in person, you can (a) send a representative with an authorization letter or (b) authorize the branch manager bidding on behalf of you. There is a form called proxy form. You need to fill the form specifying an amount up to which the manager should bid for you on every auction.

    Now on to the all important question of calculating the amount up to which you need to bid. It depends on the requirement of the person. The fact that you haven't tried to bid the chitty in itself means you are not in any urgent need of money. So, you can give a proxy specifying a reasonably modest amount and play the waiting game.

    People calculate the proxy amount in different ways. One of the popular ways is to calculate how much amount one will get as interest if the prize money is deposited as an FD till the end of the chitty. If the sum of total interest and the prize money amount is higher than the total chitty amount, it is considered profitable.

    In your case, the total amount of chitty is Rs. 400,000/-. Foreman commission is Rs. 20,000/-. The maximum amount you get at the end of the chity if you haven't bothered to bid is Rs. 380,000/- (400,000 - 20,000).

    If you give Rs. 30,000/- as the proxy amount, the prize money you get is Rs. 370,000/-. If you deposit as FD for the next 24 months, you will get a total interest of Rs.62,900/- at the present interest rate of 8.5%. At the end of the chitty, you will get an amount of Rs. 432,900/- (370,000+62900.

    By the same calculation, if you give Rs.40000/- as proxy amount, you will get a total amount of Rs. 421,200 (360000+61200).

    You can calculate various amounts and find by yourself which is the best amount.

    One more thing. Merely giving a proxy does not mean that you will be the winner in the next auction.

    Hope we haven't confused you further! Thanks for asking

  31. Hi

    Appricate the Efforts & dedication !!

    Good Day.

  32. Hello

    Can you explain CHITTY PROFIT PLUS – CAMPAIGN going in KSFE.

    How does it benefit the subcribtion completed 15 numbers.

    Soju Koshy

  33. Dear Saju Koshy

    The whole scheme is fairly well explained here.

    Substitution (which is the main attraction of Chitty Profit Plus Campaign) allows a person to join the chity scheme after the chitty is started. Some customers may not be able to continue remittance of chitty installments. KSFE allows other interested customers to join the chitty (or substitute) in the place of the defaulted customer. The new customer needs to pay only the actual subscription amount, that is, the amount minus the dividend.

    The main benefit of this scheme is that you can pick and choose chitties that give more dividend. Some chiities give more dividend than the others. When one joins a chitty at the start, one cannot correctly calculate how much dividend one will get. It varies from chitty to chitty.

    Another advantage is that the customer will get the prize money relatively quickly. There won't much competition for the prize money when the chitty passes the half way stage.

    For getting the full benefits of the scheme, it is better to substitute in 100-month chitties that have completed more than 40 months.

    One more thing. One will have to remit a reasonably large amount (sum of subscription amounts of completed installments) at the start.

    Thanks again

  34. Hi

    "Some chiities give more dividend than the others"

    How can we know which chitty gives more dividend?

  35. Dear Saju Koshy

    Dividend depends on the bidding trend. If there are more customers who are in urgent need of money, then they will try to raise the bid amount. Then all the customers in that chitty will get higher dividend.

    On the other hand, if the bidding is relatively subdued, with none of the subscribers of a chitty being prepared to raise the bid amount, then dividend of that chitty will be comparatively low. We can understand whether a chitty gives higher dividend or not only after some auctions, say after one year.

    We can calculate the total dividend we would get for a particular chitty by adding the monthly subscription amount till date and subtracting it from the total chitty amount so far.

    For example, for a Rs. 10000 x 40 months chitty, in which 15 instalments are over. The total chitty amount here is Rs. 150000/- (15 x 10000). The total subscription amount could be Rs. 122500 (it varies from chitty to chitty).The dividend so far for this chitty is Rs. 27500. Some other chitties will have higher or lower dividends.

    The advantage of substitution is the benefit of hindsight. One can figure out which chitties offer more dividend.

    Hope it is clear.

  36. dear sir
    just now i saw this blog when i searched for KSFE,nice its,i am from kollam dt,clappana,i would like 2 know that im now residing in kuwait now,can i able to join a chitty from here of my own name?if what are the proceedings for it?can i able to remit it thru fednet?and what are the schemes for for the new chitties?my mail id is,can u pls get me the details?thank u sir

  37. Dear k

    Thanks for visiting. We have sent you a mail. Please check our mail

  38. Hi,
    Will it be possible to transfer a chitty account from branch to another. For Eg., I have an account in Ernakulam branch and I have been paying the monthly amount for 5 months. Now I want to continue it from another branch, say Trissur.
    Do you have a provision for that?

    Thanks & Regards

  39. Dear Sunil,

    It is not possible to transfer a chitty account in one branch to another. We work in accordance with Kerala Chitty Act, which does not permit such a transfer.

    But we provide another facility. You can make instalment remittance of the chitty in any branches of KSFE. For example, you can make cash remittance of an Ernakulam branch chitty in Thrissur branch.

    If required, you can receive prize money payment through Thrissur branch as well. That means you can carry out almost all the transactions with Thrissur branch, even if your chitty is with, say, Ernakulam branch.

    Hope it is clear. Thanks for visiting

  40. Nice work.....a big applause for the team behind this...
    My name is Praveen MP and am from Ernakulam...i would like to join a chitty in KSFE, probably 5 lakhs (100*5000RS)...obviously i can't join in Attingal branch, you know its a big may be joining in Perumbavoor or Kuruppampady, nearest branch to hometown... How can i get more information on that particular one??? Is there a site like this is available for those branches?????

  41. Dear Praveen

    Thanks for coming and your kind words. It keeps us going.

    You may contact KSFE branch in Thrippunithara for more details. Here is the address: KSFE, THRIPUNITHURA
    THRIPUNITHURA, PIN - 682 301
    Phone : (0484) 2777815
    E-mail :

    You can find contact details all the branches of KSFE from the "Address of KSFE Branches" link under "KSFE Blogroll" at the top right corner of this blog.

  42. Great to notice that a Kerala State Govt.Organisation is so prompt in checking mails and replying, while computers are kept idle in several officers even in the table of dept heads. Today only I send a mail to KSFE HO for introducing online payment system. If LIC of India can do that for their millions of policies why cant KSFE does that..? One thing I want to comment of KSFE chit processing is the cumbersome, long wait during the payment of chit money. Hope with computerisation the customer can come, sign, collect the cheque and leave office within 15 minutes. Try to fix up a time for the customer to receive the cheque. Keep it ready and inform.

  43. Dear Shaju

    Thanks for visiting this blog and the kind words too.

    You are spot on in your observation regarding the processing of chitty payment. We too have identified the problem. 15 minutes is precisely the time we too have set. In our branch, which is a computerized branch, we managed to complete the processing within 15 minutes in many cases (but not in all cases, we must admit). Hard to see that happen in a non-computerized branch.

    Customers can help us to help them by informing us the date on which they are going to come. Many customers do that. It takes some time, say 30 minutes, to finish the clerical work of a payment. If we know that a customer comes on a particular date, we can finish half of the clerical work before he/she arrives.

  44. Dear sir,

    I want to join yr 5000*40 months chit,I am having Net Banking A/C in SBT Kannapuram (Distt. Kannur)branch,can I pay from their thru net?

    Pl reply,

    Thanx and regards,

    Pradeep Nair

  45. Dear Pradeep Nair

    Thanks for visiting.

    You can certainly remit monthly instalments of chitties through your SBT account, using the NEFT facility.

    It would be better for you to join chitties in a KSFE branch in Kannur district. To find out the nearest branch in the district, click on the "List of KSFE Branches" link on the top left corner of this page.

  46. This is a very nice blog and presentation too.
    Can't leave without this comment.

  47. Can i have the link where i can see the this months chital amount for my chitty

  48. Dijo, Thanks for visiting.

    In which branch do you have chitties. If you have chitties in our branch (that is, Attingal Evening), you can find the subscription intimation of each chitty for the last 19 months from this link at the left side bar: "Monthly Subscription Intimation (for existing customers)". If you have chitties in any of the other branches, you can ask the manager to email the monthly subscription details.

  49. This comment has been removed by the author.

  50. Hi,

    What is the procedure to claim the Prizemoney, i came to know that i got the chitty this month and i am at Hyderabad, what and all the details to submit so my parents can claim the amount

    Binoy P V

  51. Binoy, Thanks for your question

    For claiming prize money, you need to provide some kind of security for the remaining installments of the chitty. You can authorize your parents to collect prize money. They will receive an account payee cheque in your name, which can be deposited in your bank account. Please contact the manager of KSFE Chengannur branch for more details at the following address:

    PIN - 689 121.Phone : (0479) 2452941
    E-mail :

  52. Hi Sir,

    Thanks for the wonderful information. I am pretty impressed that KSFE has progressed so much in meeting their client's needs. Me, my sister and brother had KSFE chitty some time back in Palakkad branch. Our father used to remit the money for us, since it became difficult to do this every month. We did not take any new chitty. From your blog I am glad to know that online money transfer is possible which is what I was looking forward to. Thanks for this information. We would like to start once again. Kindly advice us on how to proceed, we stay in Bangalore and my sister in Mumbai. Where and how to get get to join a new chitty scheme and what is the best chitty scheme. I would be obliged if you can send me the details to

    Once again appreciate your good work thank you very much.
    regards, Sumathy Sreekumar

  53. Sumi,

    We have sent you an email with details. Please check your inbox. Thanks for commenting.

  54. This comment has been removed by the author.

  55. Hello,

    Thanks for the informative postings and responsible replays ... congrats to attingal branch..
    can you elaborate the returns of the chity ..
    e.g. if one paying 1000 RS for 100 months what will be the average yeild interst rate, he may acquire in ksfe chits

  56. Rajeev,

    Thanks for commenting.

    It’s not easy to give definite answers to the questions about the returns of chitties. The very mode of working of chitties makes any such predictions error prone. This month’s auction discount determines the next month’s instalment amount. Who determines the auction discount? It’s the chitty subscribers who participate in the auction.

    Still, it’s relatively less difficult to predict the returns of long-term chitties (particularly 100-month chitties). Take the example of the chitty you mentioned, Rs. 1000 x 100 months. Roughly about the first 40 months (it could actually vary anywhere between 35 and 50 months), the subscribers have to pay only Rs. 750/- because the winner will be decided by draw of lots.

    The winner will get Rs.70000/-. Of the remaining 30000 rupees, Rs.5000/- is deducted as foreman commission, and Rs. 25000/- will be distributed among the subscribers. [That is, one person will get Rs.250/- and he or she needs to pay only Rs.750/- (1000-250) next month.]

    KSFE conducts draw of lots if at least two subscribers are ready to bid for a deduction of Rs. 30000/- (30% of the total chitty amount is the maximum allowable deduction amount as per the Chitty Act). From the normal trend, there are likely to be at least two people for draw of lots till about the 40th instalment of a 100-month chitty). So, let us conclude for the first 40 instalments, subscribers need to pay only 750.

    The installment amount varies when the chitty enters direct bidding stage. Instalment amounts start to increase from then onwards. It is difficult to give exact figures. It could be like 790, 800, 820, 850. 880, 900, 910, 930, 950, and so on. The instalment amount generally increases with each instalment. From about 85th (it could be even 90th), subscribers need to pay the full amount, that is Rs. 1000/-, as there won’t be any competition for bidding.

    Let’s conclude. Rs. 750 for the first 40 months and Rs. 1000 for the last 15. For the in-between 45 instalments, it’s hard to put a particular figure. From general trend, the maximum average instalment amount for these 45 instalments will be 900/ (could be even less).

    Your yield will certainly depend on how much money you get as prize money and when. For a person in urgent financial need, any amount is worth at that time. If you do not have any such urgent needs, getting Rs.70000/- will be definitely profitable in the first 25 months. Because you can deposit the amount in KSFE itself, and get monthly interest for it. The earlier you get prize money, the more profitable it is. The profit depends on the prevailing FD interest at the time too,

    Previously, when the interest rates were higher than 13%, people need to remit instalments, only till they get the prize money. When the deposited the money, the monthly interest of the deposit was sufficient to cover the remaining instalment amount.

    Sorry for a lengthy response. We must admit that your words of encouragement about our blog slightly excited us. Hope you got the answer to your question. Please ask any further doubts you have.

  57. Dear KSFE team,

    you guys are doing a great job in maintaining this blog.
    what attracted me to this blog while browsing today was the quality of the responses that your team is
    providing, well explained and in simple terms ..excellent is sure your branch would do well too, best wishes .
    Ahmed , Dubai .

  58. Ahmed,

    Many thanks for your encouraging words.

  59. Dear Team,

    You all are highly apperciated and its quite awesome..this is what a customer or a person who needs to join a chit wants.
    Pls clarify few things.
    1.I have already two chits in ur Atl main br,and bid over and both are deposited in the branch itself.When I can take that money ,soon the chit is over?
    2.How much interest per month I may get?
    3.If i want to join a new chit,can i pay by fund transfer thru SBT?
    4.Proxy i was sending every month for each chit thru mail,can it be a singlr mail for the entire period?

    Thanks a lot for your valuable support and advices...


  60. Dear Sir,
    I posted a comment just now,but forgot to mention that i am working abroad.I would liek to now about the recent chits.

  61. Arun, Happy to know that you found our blog helpful. About your questions:

    1.I have already two chits in ur Atl main br,and bid over and both are deposited in the branch itself.When I can take that money ,soon the chit is over?

    Ans: You can take the money on the day you remit the final installment amount - without providing any other security or documents. No need for the termination of the chitty. You can release the FD by providing some other security whenever you want.

    2.How much interest per month I may get?

    This you will have to check with the Main branch at Attingal. You must get the prevailing interest at the time you deposited the prize money. The present rate is 9.5%.

    3.If i want to join a new chit,can i pay by fund transfer thru SBT?

    Online fund transfer is possible in both the branches of KSFE in Attingal. We say this because not all branches of KSFE have this facility.

    4.Proxy i was sending every month for each chit thru mail,can it be a singlr mail for the entire period?

    You can. Not for the entire period though. There is a proxy form, which we can send as a PDF document through email. You just need to take a print out, fill in the details including the amount up to which you want us to bid on behalf you, and send the printed form to us. The proxy form will be valid for one year (12 instalments). Please bear in mind that you will have to send a mail or send another proxy form if you want to change to bid amount.

    Hope things are clear. We have sent an email to your ID about our new chit schemes.

  62. Dear Sir,

    Thankyou very much.
    Please,I have one more doubt,if you dont mind.
    Online transfer is possible as you told,is it to my Sugama account in Atl main br?If I am joining chit in the evening br,can the money be trnasfered again from Sugama account in main br to eveing br instalment?

  63. What happens to the amount paid if I am not able to continue with a chit and I have paid 6 monthly payments out of 94

  64. Arun, we are happy to clear whatever doubts you have.

    Q. Online transfer is possible as you told,is it to my Sugama account in Atl main br?If I am joining chit in the evening br,can the money be trnasfered again from Sugama account in main br to eveing br instalment?

    You can make online transfer to any accounts of KSFE: Chitty, Sugama, loans. Only thing you need to intimate the branch about the account into which you want the money to be accounted - either through email or through phone. Email would be fine.

    You can transfer money from a sugama account in one branch to a chitty or loan account in another branch. But transferring from sugama account in one branch to a sugama account is not possible.

    Hope it's clear. We have requested the officials at ATL main branch to send you the necessary details.

  65. Cherian,

    Thanks for commenting. We think we have answered this question before somewhere in this blog itself. But no problems in answering again.

    Suppose you joined in a chitty of Rs. 1000 x 100 months, and you stopped remittance after six instalments. Two things can happen.

    1. Another subscriber may come and substitute the ticket. Then the original customer will get intimation regarding substitution. The rule is that the original subscriber should receive at least one registered notice about the default and the possibility of substitution before, repeat, before, the substitution takes place. The original subscriber will get prize money after the new subscriber receives prize money.

    2. If no new subscriber substitutes the ticket, KSFE itself will substitute the number towards the end of the chitty. In that case, the original subscriber will get prize money only after the termination of the chitty.

    In both the cases, the amount the original subscriber will get is same. In the example given above, i.e., for remitting 6 instalments in a Rs.1000 x 100 month chitty, the subscriber will get Rs. 5700/-.

    The calculation is as follows.

    Total amount= 6 x 1000 = Rs.6000
    Foreman commission = 6000 x 5%= Rs.300
    Amount payable to subscriber = 6000 - 300 = Rs.5700/-.
    (Debit or credit suspense, if any, will also be accounted)

    That is, the subscriber will get more money than they actually remitted. Even the defaulted subscribers will get the dividend for the instalments they remitted.

    Hope you got it. Sorry for explaining too much. We thought it might help others too.

  66. Thanks for your detailed response to the specific queries. Please clarify me how the lump sum amount required to be paid by the new subscriber substituting the chitty is calculated. How long does it take to pay this lump sum amount to the defaulted subscriber?

  67. Saju, Thanks for your comment.

    The lump sum amount for substitution is the sum of the balance monthly instalment amounts of the chitty thus far. For example, suppose a subscriber has remitted only one installment in a chitty. The present installment number is 10. The subscriber substituting the chitty will have to the sum of the installment amounts from 2 to 10. If the original subscriber has remitted 2 installments, the new subscriber will have to remit the sum of the installment amounts from 3 to 10.

    Two things to note here. First, a subscriber cannot substitute a ticket and participate in the auction for that ticket on the same day itself. One will have to substitute the ticket at least a day before to become eligible for participating in the auction on behalf of that ticket.

    Second, the substituted subscriber will get prize money only after deducting the share of the original subscriber. The original subscribers will get the installment amount they remitted.

    The defaulted subscriber can get their share of prize money (which is called RSC or Removed Subscribers' Contribution) immediately after the new subscriber availed the prize money.

    Hope it is clear.

  68. Salutes....

    Belated Onam wishes
    I live in Bangalore and planning to visit Kerala during October 1st week.
    Please send me the info on new Chitties I can join during October 1st week. Also please let me know the security documents required to collect Prize money.
    If the prize money is deposited as FD, whether it will be considered as security?
    My email I'd is
    Vinod Blore

  69. Vinod

    Thanks for the comment. Mail sent to the email ID with details of the newly starting chitties.

    Regarding security, we accept the following as surety: property, personal surety of government employees, FD certificates of banks and A-class co-op societies, surrender value certificate of LIC policies, KVP certificates from post office, and gold.

    If you put chitty prize money as FD, no need for any other type of security. FD will be treated as security for the chitty. Hope it's clear.

  70. Thanks a lot for immediate response which, I never expected from a Govt organisation

  71. Thanks Vinod, for your kind words.

  72. hi
    i am interested to join any one of the following chitty.
    Rs. 4000 x 25 months – Rs. 1 lakh
    Rs. 2500 x 40 months – Rs. 1 lakh
    as i am new in joining chitty i need some clarifications
    do i need to pay full 1 lakh to get back l lakh at the end of the said period 25 or 40 months?
    what is the benefit?
    what is the time line for the newly announced chitty.


  73. Prabhash, Thanks for visiting our blog and showing interest in KSFE chitties.

    Here are the answers to your questions:

    Q. Do i need to pay full 1 lakh to get back l lakh at the end of the said period 25 or 40 months?

    A. No, you don't need to. You will get dividend from the second instalment onwards. The monthly dividend ranges from 0 to 25% of the monthly instalment. For Rs. 2500/ chitty, dividend ranges from 0 to Rs. 625/- and for a Rs.4000/- chitty, dividend ranges from 0 to Rs. 1000.

    The longer the duration of the chitty, the higher will be the overall dividend. For example, for Rs. 2500 x 40 months, the overall amount a subscriber will have to pay is likely to be between Rs. 80000/- and Rs. 85000/-. For Rs. 4000 x 25 months, the overall amount a subscriber will have to pay is likely to be between Rs. 85000/- and Rs. 90000/-.

    Q. what is the benefit?

    A. Dividend is one form of benefit. Another advantage is flexibility. You can avail prize money early to treat chitty as a loan and escape from the interest. Or you can put the prize money into an FD midway through the chitty and avail the benefit monthly interest of the FD. But the main benefit is the security of KSFE. Your money is in the safe hands of Government of Kerala.

    A. what is the time line for the newly announced chitty?

    There is no time frame for joining new chitties. You can join chitties whenever you wish, as KSFE starts chitties virtually every month.

    But now is a good time because you will get the benefits of Swarnavarsha chitties.

  74. Thanks a lot for the reply.

    Kudos to all those behind this blog.
    Best Wishes

  75. kindly refer to the answer given to mr Vinod on Sept 12. If chitty price money is put as FD, there is no security required. Whether KSFE allows loans from that FD? does it require additional security documents? kindly clarify

  76. Thanks for the question, Saju.

    Before answering the question, let us explain the types of FDs in KSFE. There are two ways to put prize money into FD in KSFE: normal FD and Chitty Security Deposit in Trust (CSDT). Normal FD is like all FDs - only thing is that a lien for the chitty will be marked against the FD. One can put FD only for a maximum period of three years.

    CSDT has certain conditions. Only the future liability of the chitty can be put as CSDT. (Future liability = number months remaining x gross monthly subscription of the chitty). Also, CSDT can be put till the date of termination of the chitty.

    The advantages of CSDT are: 1. it can be put for more than 3 years, if required, and 2. it sometimes has a higher interest rate than FD.

    Now the answer to your question:

    Loan is not allowed from CSDT.

    It is possible to take loan from normal FDs having lien to chitties. No need to provide security for such loans. A maximum of 90% of FD amount can be availed as loan. But the future liability of the chitty will take into account when considering the eligible loan amount.

    For example, consider the case of Rs. 2500 x 40 months chitty, which is at present is at 30th installment (that is, 10 installments remaining), where the prize money of the chitty, Rs. 90000/-, is put as FD.

    The maximum loan amount allowed is 90% of the FD, that is, Rs. 81000/-. We need to subtract the future liability of the chitty from the eligible amount.

    In our example, future liability is Rs. 25000/- (10 months x Rs. 2500/-)/. So, in this case, the subscriber is eligible for a loan amount of Rs. 56000/- (that is, Rs. 81000 - Rs. 25000). The interest rate of the loan will be 2% plus the rate interest of the FD.

    Hope it's clear (and sorry if we over-explained it. it's actually very simple!)

  77. I was thinking in the other direction.
    For a chitty of 1 Lac (Rs.2500X40), the commission for the operator per month is Rs.5000. i.e. Rs.5000 X 40 = 200,000/-

    For a chitty of 1 lac, the operator will get Rs.2Lac.

    Am I correct?

  78. Kindly clarify whether a chitty of higher duration is more beneficial than a shorter duration in saving/investment/better return point of view.
    For example,in Rs 2500 X 40 = 1 Lakh and Rs 4000 X 25 = 1 Lakh, which will be better?

    Thank You

  79. Vinod,

    Yes. You are right. The foreman or the operator of the chit fund gets 5% of the total chitty amount every month.

    Longer duration chitties are better in a savings or return for investment angle as these chitties will provide a higher dividend than shorter duration chitties.

    40-month chitties offer more dividend than 25-month chitties, and 100-month chitties offer more dividend than 25- or 40-month chitties.

  80. Dear Sir,

    As I am an NRI,can i have a fixed deposit in KSFE,already my chit money is deposited in KSFE br and chit wll be over by Nov'11.

  81. Arun, you can put a fixed deposit in any branch of KSFE. The present rate of interest is 10%. Please check with the branch for FD application form.

  82. Dear sir,
    Thanks to this blog. I have got lot of knowledge about chitties. I hope KSFE starts a site through which we can remit our monthly amount as well as bid online.

  83. Prabhat,

    Thanks for your kind words. We are going to upgrade the software by the next financial year. Hopefully, it will facilitate online payment and auction.

  84. Hi,
    Kudos to the team for keeping the blog alive and for the prompt and comprehensive reply.
    I am a novice here, but understood a lot by going though your replies.
    Could you please explain more about the bidding process and proxy amount?
    Lets say for example I have joined the chit fund 40*2500 and I need for Rs90000. How much should the bid amount be (generally how high does it go?) Also what is the maximum and minimum biddable amount? Will the bidding start from the first month onwards?

    Thank You

  85. I am interested to join Rs. 50000 x 40 months – Rs. 20 lakh (but my income is around 25000-30000 only) and having 7 lakh fd @ 50000 each in hand .. i think if cash shortage arise i can break the part fd and save the chitty payment.. is it good practise ..

  86. Seb, Thanks for your comment.

    The maximum bid amount is 30% of the total chitty amount and the minimum bid amount is 5% of the total chitty amount. For a chitty of one lakh (for example, Rs. 2500 x 40 months), the maximum bid amount is Rs. 30000/- and the minimum bid amount is Rs. 5000/-.

    In a chitty of Rs. 100,000/-, if you want Rs. 90000/- as prize money, you have to give a bid amount of Rs. 10000/- (Rs. 100,000 - Rs.90,000). KSFE will participate in the auction on behalf of you and bid for you up to the amount specified.

    The bid amount is directly proportional to the need of the subscribers of the chitty. The greater the need, the higher will be the bid amount. For any chitty there will be some subscribers who want to get prize money immediately. They usually go for 30% bid amount. That is, for a one lakh chitty, they go for a bid amount Rs. 30000/-. So, people who provide Rs. 10000/- or lower figures as bid amount will have to wait for some months as there will be higher bid amounts in the first few months.

    The bidding starts from the first month itself. If there are more than one subscriber specifying the maximum bid amount (that is, 30% of the chitty amount), the winner will be decided by draw of lots.

    Hope it is clear.

  87. King Son,

    Thanks for your question.

    But we are afraid the option you have may not provide the desired results. It is always better to start a chitty that you can pay from your monthly income. If your total monthly income is Rs. 25000-30000/-, try a chitty of Rs. 10000/- or maximum Rs. 20000/-.

    Prematurely closing FDs will result in loss of interest. The net result may not be as profitable as what you imagine. Think again and analyze the possibilities before making the decision. Good luck.

  88. what is advance auction.will you pay prize money in advance ? what terms and whats the terms of repayment

  89. Bharath,

    Thanks for your question.

    Normally, the prize money of the first auction belongs to the foreman. It is called Piricheduppu in chitty terminology. But KSFE, in practice, provides the prize money of the first auction to the customer. Hence we call it advance auction. It is not a procedure to pay prize money in advance.

    There is another thing called advance payment of prize money. By the Chitty Act, a subscriber is eligible to receive prize money on the day of next installment of the chitty or 30 days after the auction. But the subscriber can opt for advance payment of prize money. That is, subscribers can choose to avail prize money before the next installment of the chitty or 30 days after the auction. They will have to pay 15% interest on the prize money, only for the number of days they are going to advance the payment.

    Please note that subscribers have to provide security as in the normal circumstances for advance payment of the prize money too.

  90. Dear sir,

    Thanks to this blog. I hope KSFE starts a site through which we can remit our monthly amount as well as bid online.

  91. Hi ,

    Am from Paripally,residing in Dubai.please let em know your new chitties.I have Account in SBT Branch Paripally.How to move forward.please Advice.

    You can send email to

    Thankyou Very Much & Best Regards

  92. Mahesh,

    Mail sent to the email ID provided. Looking forward to your reply.

  93. Jijo

    Thanks for your comment. Online transfer is going to be a reality soon, hopefully. Read this:

  94. Many Thanks for your quicj response,i wll update you ASAP.

    Thankyou very Much & Best Reagrds

  95. Hi,

    Can I authorize, the Branch Manager, to bid on behalf of me? Is there a separate form, available for that? Can that form downloadable from the website/send through email? What are the different documents we can show for guarantee?

    Many thanks,

  96. Sriram

    Thanks for visiting our blog.

    Yes. You can authorize the branch manager to bid on behalf of you. There is an application form called proxy form. Please take a print out of the form, write your chitty no., chittal no., and amount up to which the manager must bid for you.

    You need to submit another form too called auction difference. All these forms can be downloaded from this page.

    In case you are not able to download it, please let us know. We shall send it your mail ID.

    Also note that the proxy is valid for only one year (that is, for 12 installments), after which it must be renewed by sending a fresh proxy form. You can also change the bid amount any time by submitting a fresh proxy form.

    Please note that only the proxy forms of customers who are up to date with their remittance at the time of auction will be considered for auction. Auction is conducted at 1 PM in most branches. So one needs to ensure remitting installment amount before 1 pm on the due date.

    As for payment, KSFE accepts the following documents: Gold, property, LIC policy, salary certificate of government employees, FD from banks and societies, bank guarantee, passbooks of non-prized chitties, and Post Office deposit documents such as Kisan Vikas Pathra and National Savings Certificates. For more details about securities, visit this page.

    Hope it's clear.

  97. Hi
    I am currently residing in Bangalore and hail from Thiruvalla Kerala.I am interested in starting a chitty with KSFE.
    Do you have any Offices in Bangalore if so please forward the contacts?
    Or can you please contact me on this id with the chits starting from xmas if any.

    Keep up the good work with this blog!

  98. Unknown,

    Thanks for your kind words. Mail sent to the email ID provided.

  99. Hi
    I am currently residing in Mumbai and hail from mallapally Kerala.I am interested in starting a chitty with KSFE.
    Do you have any Offices in mumbai if so please forward the contacts?
    Or can you please contact me on this id

  100. Jeffin

    We do not have branches outside Kerala at the moment. We have a branch in Mallapally:

    Phone : (0469) 2681539
    Mob: 9447797243
    E-mail :

    Kindly contact the manager of Mallapally branch for more details.

    And thanks for the comment. [Yours is the 100th comment of this post!]

  101. dear sirs,
    is there any written law for KSFE.from where i can refer it.i want to know the law points/act about the followings.
    1) prized subscriber who is not a mortgagor,need to sign on mortgage deed.
    2)a prized subscriber need not to pay interest charges for his chitty loan after 30 days from the chitty auctioned.even if he not executed agreement for ever,means even after termination of the chitty.
    please help me

  102. Bharath,

    There are official circulars regarding the points you raised. You need to contact our head office at Thrissur for getting these circulars. You find contact details of top officials of KSFE from this page:

    If you are from Thiruvananthapuram or Ernakulam, you may contact an expert on KSFE matters, Mr. KJ Padmakumar at He is from Thiruvananthapuram, currently manager of Thrikkakkara branch.

  103. yes there are official circular.why you fear to disclose is not fair to direct your clients to top officials.through this posts,you attracts several people and many of them wrote to you and informed that they wish to join the time of payment either loan or chitty price, you will tell them to contact tops for releasing their money.i know you collect interest for chitty loan, even after 30 days and up to the time of closure of the loan. example if you release the chitty payment even after 3 years,you will charge interest for 3 years.for not releasing payment you will do the maximum as you can.common people don't know about the rule which you never disclose.there is no written law for a trap especially for pravasis.if not it is the time for you to send a reply for public interest

  104. Great...The blog is reaslly useful. I am a toddler in this field. Would like to start a chitti. Can you please give me details of the chitti that is going to start during this month. From where will I get advance information about the chitties that are coming up. Please send the Application form and also please let me know the modes of payment presently available for payment of monthly chitty amount...


  105. Hi,

    Kudos to the team behind this blog!!!!!

    I joined for ksfe chitty (25000*40= 10 lakhs) on October 2011 and paid the first installment. Later I found some errors in subscriber name, nominee name and father’s name given in variola. Then I have given a written request to ksfe branch manager stating that I need to correct the names in variola and computer database. They changed the names in computer database and we went to Registrar’s office to correct the name in variola and I put signature (initial) in all places where I corrected the names.

    Is it ok to make correction in variola?
    What is the official procedure to transfer chitty to other’s name?
    Will I face any issues while calming prize money?

    Expecting your prompt reply…………


  106. Jayakumar NS, Thanks for the comment. Mail sent to your email ID.

    Bharath. Pls give us your mail ID and some time. Shall send a scanned copy of the circular to your ID. The prevailing circular in this matter was issued in 2006. There is no issue of cheating, as you allege. KSFE would not have survived 44 years by cheating people.

    You can also use the Right to Information (RTI) route to get the necessary details. All offices of KSFE come under RTI act.

    Also, we operate at branch level. We neither have the power nor have the right to resolve problems in other branches. That's why we directed you to the higher officials. No malice intended.

    And for this blog. This is mainly to provide information about KSFE. Only a small percent of our customers have joined chitties through this blog. You can register your complaint online if you want. Here is the page for that:

  107. Alby, Thanks for your comment.

    It looks okay. A duplicate of application form is kept in the branch. Hope you have made corrections in that also. The copy kept in the branch is more important for future transactions. They check this application at the time of chitty prize money payment. Please make sure that the relevant changes are carried out in that form also.

    The procedure for changing names is either substitution or assignment.

    Another person can take over the chitty with your permission. It is called substitution. At the time of prize money payment, the new subscriber will get prize money for only the installments he or she remitted. You will get the prize money for the installments you remitted.

    Another option is assignment, in which the new subscriber get the whole prize money. But it is normally, but not necessarily, done in the event of the death of the original subscriber.

    For both the above cases, you need to provide a fresh application form and KSFE files that application in Registrar's office.

    No problem for correcting the application form. It is unlikely to cause any problems in the future if the corrections are made on the copy kept in the branch too.

  108. thank you KSFE,
    kindly read my post dated 1st December 1 & 2. please mail me to the below id.

  109. sir,i am waiting for your there any publications for ksfe.where do i get it.through some other sites,i knew something like manual of procedure is there. when it is published.will you please help me to get the same.or similar publications.i think that you will make this site useful for your customers,who is not having any idea about the ksfe rules.whatever the branch says,that customer will obey,is not a healthy business policy.

  110. Bharath,

    Sorry to tell you that it will take some more time. As we said, the circular was issued in 2006, but our branch started only on 2008. So we do not have a copy of that. We need to get the hard copy of the circular from some other branch. We have already asked some staff from other branaches to get that. Brancehs are generally busy during the first ahlf of the month. Please give us some more time.

    All our circulars since 2010 are available online: (see bottom of the page).

    We have an internal database of circulars from 2007. But the one you require happens to be of 2006. Kindly wait.

  111. respected sir,
    i know you wish to help me.but u cant.because yourself told the other branches are busy.i am posting this to ksfe not 2 u,who is innocent and helping mind.
    hereinafter u mean you think that the other people are lazy,or they don't have any other work.and some times if u issue an RR u will specify the time limit ie within 15 days.where v the common people can search your rules.u know several trapped.the victims can share their grievance with me my id

  112. Bharatrh,

    Circular sent to your mail ID. We hope we can conclude discussion on this matter here. We are open for help on any other subject.

  113. thank you very much.
    sir i have the RR in my hand,issued by ksfe for interest + loan amount.the chitty auctioned several years back.and the prize money was sufficient for the settlement of my loan amount plus the case is in the court.i will come back to you,with the story how i trapped by ksfe.if u wish give a response.readers can also join.

  114. Dear Sir,

    Thank you for maintaining such a wonderful site, with tons of information.
    It is rare to see this kind of information, that too updated regularly.

    I'm working in USA, and planning to start KSFE chitty.
    One question I've is usually which one (example from 25000x40 months & 5000x40 months) will go more in 30% reduction ?

    About starting a chitty, Is it possible for me to start at your branch, instead of one at my hometown (In kerala) ? Simply because i guess it is easy to communicate with you/your branch.

    Any documents or proof other than the "variola" required to start the chitty ?


  115. Vinu, Thanks for your motivational words.

    Regarding your question, all the 40-month chitties are likely to go more or less the same period in 30% reduction. These chitties can go in 30% reduction anywhere between 3 and 8 months. That is the general rule regarding this matter.

    But I checked six chitties of above-mentioned patterns in our branch (four 5000 x 40 months and two 25000 x 40 months). I found that Rs. 25000 x 40 months go more installments in 30% reduction. Both the Rs. 25000 x 40 months went for 30% reduction for seven installments, while the maximum a Rs. 5000 x 40 months went for 30% reduction was five installments.

    This data is purely based on the situation in our branch in the last two years. It may not happen like this always.

    We are extremely happy to see your interest in joining chitties in our branch. But we do not want to cause too much convenience. Please send us your email ID or send a mail to

    Normally, we do not want any special proof of address for joining. Simply filling the application form is enough. But it would be great if you can send a scanned copy of an identification certificate, passport or election ID in India.

    1. Hi
      I am in Mumbai and still trying to figure out how I could start a chitty. I may be able to invest about 10k/month. Kindly advice me the ideal way to go ahead and also let me know if you need collateral security to get the chitty amount in hand. (



  116. Robin Payapilly, Thanks for your comment.

    We have three types of chitties that suit your budget:

    Rs. 10000 x 30 months - 3 lakhs
    Rs. 10000 x 50 months - 5 lakhs
    Rs. 10000 x 100 months - 10 lakhs

    As we said in the blog post, you can use chitties as either a loan or a savings scheme.

    If you want prize money early, that is, if you want to treat chitties as a loan, then the 30-month chitty would be better.

    If you looking for savings, 100-month chits would be the best option. The 50-month chitty is kind of a hybrid - it provides reasonably good dividend and the subscriber can get a profitable amount as prize money.

    Kindly think over it and choose a suitable plan. After that, you need to select a branch of KSFE. It's always better to start chits in a branch of KSFE near your home town. Our branch is at Attingal. You can find contact details of all the branches of KSFE from this page:

    The application can be downloaded online from this page:

    Take a print out of the form, fill in details on page 4 and send it to the branch of your choice.

    You need to provide some kind of security when availing prize money. The security should have a value equivalent to to the total future installments of the chitty at the time of payment. We accept the following securities: property document, salary certificate of government employees, gold, surrender value certificate of LIC policies, post office deposits, fixed deposits in banks and societies, and bank guarantee.

  117. Dear KSFE Attingal Branch,

    Really Appreciate the efforts in staying connected....

    Currently I am having PTA branch... but not satisfied with approach and efforts. Now next time I prefer to go to attingal branch.

    Soju koshy

  118. A great aappreciation!!!! A lot of information and timely answers. Let's hope all other government departments and employees take this as an example!

    Cheers and good luck

  119. Hi All,

    This is Sarun V Ravindran, working in new Delhi i am interested in joining the KSFE chitti so is there any branch in Delhi where i can join as well as make the payment. Kindly guide me.

    Thanks & Regards

    Sarun V Ravindran

  120. Sarun V Ravindran

    Really sorry for the delay in response. We are facing problems with the internet connection in our office. It looks beyond rectification.

    About your question, we don't have a branch outside Kerala. However, you can join chits in any branch of KSFE. Kindly send your home town details in Kerala. We shall direct you to the nearest branch.

  121. Awesome blog
    Just wanted to congratulate people behind this

    God Job

  122. hi...i m an nri from hometown is thalassery...i wanna join a chitti soon(10lakh or above)..but the duration shud not be very long..i need to know if there is any new special scheme...since onam is heading near...and also if i can carry on any missed remittance...which is more beneficial???to join a new one or to carry on the missed remittance.. since i cnt visit a branch soon ..kindly send me all the details answering ma doubts..
    btw u guys r doing awesome job...earlier i had zero knowledge about it is'nt the same situation..thanku..

  123. First time visitor to this Site. Really enlightened :-)

  124. This comment has been removed by the author.

  125. Kindly clarify the method of charging service tax. I have read from your blog that you are charging INR 375/- for one lakh chitty as service tax. Could you please show the calculation of service taxes

  126. Jafer Yusef. Thanks for your question.

    The central government brought in chitty businesses under the purview of service tax a few years back. The rate of tax is 7.21% of foreman commission and documentation fee.

    For a chitty of Rs. 1 lakh, foreman commission is Rs. 5000. The service tax for foreman commission is Rs. 361. We also charge Rs. 200 as documentation fees for each chitty payment. A service tax of 7.21% is applicable for documentation fees also. The service tax for documentation fees is Rs. 14.

    In total, the combined service tax at the time of payment for a chitty of Rs. one lakh is Rs. 375/- (361+14).

    Hope it's clear.

  127. wonderful work... thanks for the post. though i was indirectly involved in the chitties since childhood, only now, reading this post i came to know about how it functions. i dont think any scheme better than this with the sureties of the returns... and we also contented as it is helping the state to develop.

    can we say this is a brainchild of keralite?

    is there any other state using the same fashion to make the cashflow?

  128. firoz khan. thanks for your kind and motivational words.

    We don't know for sure whether the chitty scheme was established in Kerala. But surely in South India. No other states, in the best of our knowledge, have a an active government agency to conduct chits. The governments of Karnataka and Pondicherry had had plans to start one. Don't know whether the plans materialized or not.

  129. Hello,

    I have been told by the KSFE branch manager(Chathannoor) that, I need to pay a processing fee(around 5000) for getting the prize money.. I did a good search in KSFE website and Google but can not find any info regarding this.. I just want to know why KSFE is asking for processing fee and also whether this info is included in chitty application form?

    Thanks in advance!!

    Many Thanks,
    Nibu M

  130. Nibu M

    Thanks for your comment. There is nothing called 'processing fee' in KSFE. There is a fee called bond preparation charge (BPC), which is also called documentation charge or writing fee. But it is Rs. 200/- only.

    From the amount you mentioned, we can only think that the manager was referring to service tax, which we remit to the central government. For a chitty of 1 lakh, the service tax comes roughly above Rs. 400/-. So, if your chitty is of Rs. 10 lakhs, the service tax comes more than Rs. 4000/-.

    We have dealt with service tax on this page itself. Please read some of the earlier comments [A writ petition filed by KSFE for exemption from the service is still under consideration of the honorable high court of Kerala].

    We request you to clarify with the branch manager whether it's service tax he/she was mentioning. The matter of service tax is mentioned in the chitty application form (please refer 21(a):

    1. Nibu M.
      Would like to add one more thing. The central government has recently revised the rate of service tax. Earlier, it was Rs. 375 for Rs. 1 lakh. Now as the rate has been increased slightly, the amount comes to over Rs. 400/- for an one lakh chitty.

    2. To the Admin

      I would like to know if there is online remittance facility for KSFE Kalpetta Branch, Wayanad. If yes, Please give me the details of procedure



    3. Vivekanandan.M

      Thanks for your comment. Please check with the manager of Kaltetta branch for details of online payment:

      KALPETTA P.O, PIN - 673 121
      Phone : (04936) 202495
      Mob: 9447797017
      E-mail :

  131. This comment has been removed by the author.


  132. I am an NRI,wanted to join in ksfe chitty. I am residing in Kottayam,kanjirappally. I would like to join an nri scheme chitty. i would like to know the details or any other new scheme is there to join. pls reply regarding these doubts and if any other suggestions pls let me know.


  133. Dear sir,
    I am currently working in Bangalore and hail from palakkad Kerala.
    I am interested in starting a chitty with KSFE.
    Do you have any Offices in Bangalore/ palakkad Althur if so please forward the contacts details?
    Or can you please contact me on this id

    Thanks & Regards
    Ramesh Appu

  134. dear sir,
    I would like to know the formalities for sugama deposit it the same as a savings account in bank?

  135. Dear Adviser&team,

    I really appreciate your effort for giving prompt reply for all the queries.

    Can you please answer the following;

    1. If i am going to deposit my Sala in KSFE itself as FD, is there any security needed for the remaining installments?
    2. Can i use third person's property as security? Say, Land property in the name of my friend.
    3. How you will value the property security, say land, what is time period required for it?

    my mail id :

  136. Mohammed Ashraf, Thanks for your questions. Here are the answers.

    1. If i am going to deposit my Sala in KSFE itself as FD, is there any security needed for the remaining installments?

    No need for any security. The FD will be the security and FD certificate will be kept in the branch. Subscriber can avail interest and renew it.

    2. Can i use third person's property as security? Say, Land property in the name of my friend.

    Yes. You can. The property owner will have to come to the branch for signing the documents.

    3. How you will value the property security, say land, what is time period required for it?

    Branch manager and an approved external valuer will come to value the property. The usual value will be less than the prevailing market rate.

    Time period varies. Let us say on an average the whole process takes two to three weeks.

    Hope it's clear.

  137. Yes. Its very clear now. Thank you very much.

  138. hi, i am new to ksfe, i can invest 6000 p.m ,can you plz suggest which chitty is good for me .am interested in 6000*50 mnts 3 lakhs . how it will benefit for me..

  139. Unknown, Some of the branches of KSFE have 6000 x 50 months chitty. You may also consider joining 5000 x 40 months chitty. Please find out the nearest branch from this page:

  140. This comment has been removed by the author.

  141. Dear Sir,

    Good Job ...The blog is really helpful.

    1,Which are the best KSFE savings/chittis plans for NRI's?

    2,FD Interest Rate for savings account?

    3,FD Interest Rate for chitti prize money ?

    4,Allowable maximum/Min FD time period?

    5,KSFE start to receive payment through online?




    1. DEEBU MATHEW. Thanks for commenting. Here are answers to your questions.

      1,Which are the best KSFE savings plans/chittis for NRI's?

      All the chits above 40 months are good savings options. The longer the period, the higher the savings.

      The best savings chitties are:

      Rs. 10000 x 100 - Rs. 10 lakhs
      Rs. 5000 x 100 - Rs. 5 lakhs
      Rs. 2000 x 100 - Rs. 2 lakhs

      Rs. 10000 x 50 months - Rs. 5 lakhs
      Rs. 2000 x 50 months - Rs. 1 lakh


      Rs. 25000 x 40 months - Rs. 10 lakhs
      Rs. 5000 x 40 months - Rs. 2 lakhs
      Rs. 2500 x 40 months - Rs. 1 lakhs

      Let us repeat. 100-month chits are the best savings options, followed by 50-month chits and 40-month chits in that order. If savings are in your aim, do not bother about chitties with lower duration.

      2,Which is the current FD Interest Rate for savings account?

      For FD, interest is 10%. But if you are putting chitty prize money as FD, the interest ranges up to 10.5. Interest rate for savings account is 5.5%.

      3,Which is the current FD Interest Rate for chitti prize money ?

      If you are putting only the future liability (subscription amount x number of future installments) into FD (which is called CSDT), interest is 10.5. If you are putting the whole prize money into an FD, interest is 10.35%. Senior citizens will get 10.5% for all kinds of FDs.

      4,Allowable maximum/Min FD time period?

      Three years maximum for FD. No such restrictions for CSDT. One can deposit it till the termination date of chitty.

      Hope the answers are clear.

  142. Contd...

    5, KSFE start to receive payment through online?

    It is in testing mode, in selected branches. Soon, all branches will have the facility.

    1. Thanks for your intimidate reply.

      Can you please provide me the list of branched which receive online payments

  143. We do not have the list of branches. All branches will have the facility within a month or two (touch wood!). Please visit this page to find the branches near to your home town:

  144. There is a typo in my previous reply. The interest rate for putting whole prize money into FD is 10.25%, not 10.35% as mentioned in the previous reply. Regret the error.


  146. i have jined chitty 5000*100 mnths nw 20 instalments ,it it adviseble t bid nw

  147. Dear sir,
    Is it possible to get a statement of sugama account by mail. Pl reply


  148. Dear Sir,
    As an NRI, how can request for bid once joined ?
    What is the formality to deposit the amount in FD ? ( if I am abroad when bid is won )
    Also from which date after prized it can be put to FD at KSFE itself till all the installments are over ?

  149. Dear Sir,

    Suppose , after receiveing chity prize money from an auction , subscriber dosent continues futher balance installment , how does it work futher for chitty group members..?

  150. What will the amount payable by the customer, when there is No-Auction in the last few months of any chit.

    Plz illustrate me with example of any value chit.

  151. I have Suguma account in KSFE. How can i deposit to Suguma account from foreign countries? And plz answer how NRIs can operate chitti without proxi.( i dont like proxies dealing with my money)

  152. Sir,
    I have a chitty in KSFE, it is now 14 months completed(total 40 months), can I close the chitty now prematurely?, will I get interest in this case?


  153. It is incredible that a Govt institution like yours is so citizen and investor friendly and is taking time to explain things through this blog. Kudos to all of you behind this and I must say the language and explanation is professional and world class. Keep up the great work Attingal KSFE


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