Friday, January 1, 2010

Frequently Asked Questions about KSFE Chitties

1. What are KSFE chitties?

Chitties (also known as chitty, chit funds, chitti, or kuri) are a multi-purpose monthly investment scheme. KSFE chitties are the only safe and reliable chitty investment option in Kerala. There are scores of private chitty companies in Kerala. Unfortunately, many of them are fly-by-night operators.

2. How do chitties work?

We have dealt with this question before. Please see this page.

3. Can I remit money from abroad?

Yes, you can. The conventional method is to send money via checks or demand drafts.
You may also make online transactions. For that, you should have a bank account from which you can make online transaction to Indian banks (for example, NEFT facility, which most of the Indian banks offer these days). Please get in touch in with us for more details.

4. Can I make online transactions?

KSFE has not yet made any special arrangements for online transactions on its own. However, you can still make online payment. Get in touch with us for more details (see the question above).

5. What are Ponnona chitties and Pravasibandhu chitty?

KSFE has been launching these two special schemes over the last three years. The chitties during special schemes offer additional benefits to the customers in the form of prizes and privileges. The basic idea behind the schemes is to share the company’s profit with the customers.
Ponnona chitty
Ponnona chitties are launched during the time of Onam. The prizes of this scheme include cars, motor bikes, and gold coins and privileges include enhanced interest rates for fixed deposits, insurance protection, and special loan schemes.
Pravasibandhu chitty
The pravasibandhu chitty scheme is normally launched in November. The prizes include cars, flight tickets to Dubai, and gold coins. The privileges remain the same as that of ponnona chitty.
In other aspects, the chitties of these schemes are like any other KSFE chitty.

Further FAQs can be found here.

Please feel free to contact us if you have any other question or you want to join KSFE chitties. Our email ID is


  1. Hi,

    Can a person from other states join chitti? I have my friend who is from Trivandrum and who is customer of KSFE

  2. Hi Unknown,

    Thanks for your query. There is no technical hitch or procedural requirement that prevents persons from other state from joining chitties. But we would like to know our customers. While there is no need for you to come in person to the branch for joining chitties, you need to come to the branch at least once - most preferably at the time of receiving prize money of the chitty.

    If you are interested, go ahead and join a chitty in the branch where your friend is a customer. After all, it provides you twin benefits: you can enroll in a profitable investment scheme and occasionally see the scenic beauty of Kerala!

    1. This comment has been removed by a blog administrator.

  3. Hi,

    I had some enquiries to make regarding the recommendation my friend made. I was advised to opt for a Chitty investment as opposed to applying for a home loan.

    The property is worth 20,000,00.00 ( 2lks) - 2 Bedroom Flat (700+ sq ft)

    There are 2 payment methods advised to me by the Builders.

    Option 1;-

    Advance : Rs. 10,000.00
    Then Reg: Rs. 3,50,000.00

    Balance in 6-7 Equal instalments, immediately after registration.

    Option 2;-
    Advance : Rs. 10,000.00

    Then 25% of the total cost ie; approx 5,00,000.00

    Remaining by way of home loan ( During this time the registration shall be done in the owner's name.)

    This property is within 500 mtrs from NH 47. ( YMJ Road - Opposite Jawaharlal Nehru Stadium)

    My loan eligibility shall be between 10 to 12 lacks. I have a salary of 21thousand plus incentives. Working in a private sector organisation in Infopark Kakkanad for the past four years.

    I checked on the blogs of - which says of the savings in opting the ksfe chitty & loan facility.

    Would your organisation consider this profile fit to engage in a chitty investment?

    Appreciate your patient reading and looking forward to a response


  4. Pooja,

    Thanks for your query.

    Your profile and requirements look fine. It would be better if you contact the manager of a branch. Since you work at Infopark, Thrikkakkara branch of KSFE, which is actually at Kakkanad, may be the nearest contact point. Please contact the manager of Thrikkakkara branch at this address:

    KAKKANAD P.O. KOCHI - 682 030.
    Phone : (0484) 2426575
    E-mail :

  5. i interested to start a chitty with instalment 2500 per month at cherthalla branch.

  6. i would like to start a chitty with instalment of 40000 over 72 months

  7. d mohana das,

    Thanks for showing interest in our chitties. We have three branches in Cherthala:

    CHERTHALA,PIN - 688 524
    Phone : (0478) 2813053
    E-mail :

    CHERTHALA - 688 524
    Phone : (0478) 2816053
    E-mail :

    and the recently started

    PIN - 688 524. MOB :9496007377
    E-mail :

    Kindly contact any of these branches for further details.

    1. This comment has been removed by a blog administrator.

  8. Ajesh,

    Thanks for visiting the blog. Please check your inbox. We have sent you a mail.

  9. refer FAQ 3.why you insist for subscribers presence at the time of receiving chitty prize where a subscriber who join in a chitty with his proper ID and who makes payments through the subscriber can arrange property of of theire relatives as security which has a value enough for future liabilities. can you transfer the prize amount to the subscribers account,you can even send payment by crossed cheque.or as per his instruction like making the mount as FD .the mortgagor will sign on the subscriber need to sign in the agreement or in any documents? if yes,WHY ?

  10. Malabary, Thanks for your comment.

    Actually, we do not insist that the subscribers should be present when receiving prize money. We can either online transfer the amount to the account they provided or send account payee cheque directly to the bank.

    But we prefer to see the customer in person at least once. Otherwise, our staff or the agent should be able to nominate the person. We do not want to make a our procedure fragile so that it would allow a person with a fake identity card to misuse it. Such things happen.

    The subscriber of the chitty should sign the documents. Otherwise, the documents will not have legal validity. Please remember that it's three-way agreement among KSFE, the subscriber and the mortgager. If the subscriber does not pay the balance installments, we will not be able to recover the amount.

    These regulations are formulated by the government as per the prevailing law. Individual branches and officials are just carrying it out.

    Hope it's clear.

  11. sirs,
    on the basis of a chitty (2000x100)i have an ncl account with ksfe.for Rs 100000.i haven't
    paid any interest (12%) yet.myself worked out the loan + interest,the amount will be approximately Rs 140000/.
    to avail the loan my parents given the documents of their property,which has a value of Rs 500000/ fixed by ksfe.
    to escape from interest liabilities,i wish to be a bidder of next day chitty.i have updated my chitty installments. i expect the prize money Rs 140000/which may equal to the amount of my loan account. myself and my parents are a not in station..on behalf of me my representative will participate in the auction.
    for further proceedings,please read below and kindly clear my doubts.
    1)is the submitted valued document is sufficiant
    2)any addl docs or supported docs required
    3)execution of addl docs/agreement by my parents/myself or both,if any.
    i am afraid of possible delay if required any of the these case what will be the status of my prize the loan was sanctioned on the basis of the chitty will KSFE use the prize money to close my loan account
    please rely
    Mr xx

  12. xx, thanks for the comment.

    First of all, please check with the branch to find out the exact interest. Now on to your questions:

    1)is the submitted valued document is sufficient?

    Yes, the property submitted should be sufficient if it has the value you mentioned and it is not pledged for any other chitty or loan.
    2)any addl docs or supported docs required?

    You need to provide encumbrance certificate obtained from the Registrar's office again. The owner of the land (your parents) and the subscriber (yourself) will have to come to the office for signing the documents.

    3)execution of addl docs/agreement by my parents/myself or both,if any?

    Yes, both of you will have to sign some documents again. Because the documents for the chitty are different from that of loan. We treat both as different transactions.

    4) i am afraid of possible delay if required any of the these case what will be the status of my prize the loan was sanctioned on the basis of the chitty will KSFE use the prize money to close my loan account?

    If you win the auction, you are eligible for receiving the prize money on the date of the next month's installment. Interest will be charged for the loan till that date only (that is, the date of next installment). We do not usually close the loan without repeatedly informing the subscriber.

    Hope it's clear. Any more doubts?

    1. Hi Sir,

      I have a question regarding the pre closure of the chitties. I got two chitties with Olavakkode branch in palakkad and two of them are auctioned and withdrawn the money. It is almost 38 months now and I would like to pay the entire balance in a single payment and need to withdraw my securities pledged. Can you please advise the possibilities?


  13. thank you,sir,i have little more doubts.please read from 4)mentioned in your reply dt 23rd Aug 11.before that please note the followings.
    reg.interest and valuation of the property (documents submitted towards NCL)can check with branch.also can provide each and every required documents. affidavit,tax receipts, encumbrance, application (for acceptance of property) ,complete except below said documents.
    please read from here 4)very clearly i told you that we (parents and myself) cant come to your office.
    in your reply,you says that we have to come and sign.i hope its the document to be executed in front of ksfe authority and witness.same time you says that i am eligible for receiving prize money within 30 days from the date of auction and from that day you will stop collecting interest from me towards also says that in such a case usually you don't close NCL without repeatedly information (?)
    i am not able to understand this.please reply
    thanking you Mr xx

  14. xx,

    We are sorry to have caused confusion. Let's clear it. Sometimes words fail us.

    We had said that you are eligible to receive prize money 30 days after the auction, and we do not charge interest for after that date. That means even if we close the loan after, for example, one year, we will charge interest only up to 30 days after the date of winning the auction. Consider this scenario. You won the auction on 20-8-2010. You are eligible for prize money on 20-6-2010. You need to pay the interest for loan only up to 20-7-2010. And suppose you are receiving payment of the chitty today, that is, 26-8-2011. Even then, you need to pay the interest only up to 20-7-2010, not up to 26-8-2011. In short, the date of closing of loan does not matter in such cases. The interest will be calculated only till 30 days after the date of winning auction.

    One more thing. In the above example, you will not have to pay default interest for the chitty till you receive prize money.

    Regarding the documents, if you can provide encumbrance and tax receipts it would be fine. You and your parents need to sign on the affidavit in the presence of KSFE officials. If you are staying in some other places in Kerala, we can arrange you to go to the nearest branch of KSFE. If needed, even the officials can come to your home, provided it is in Kerala.

    But if you are staying outside, there is practically no solution to this. But you can wait till you come home. There will not be any monetary loss, as we do not charge interest for that period. You need to pay just the chitty installment as you plan to do even otherwise.

    Hope it's clear now. If it is not, please let us know. We'll try to provide a simpler explanation.

  15. How can i make online payment in KSFE???/

  16. Nanda Kishor

    Thanks for your question.

    Online transfer is actually simple. Each branch of KSFE has an account in a Nationalized or Commercial bank. Customers need to transfer fund from their account to the branch's account. You can obtain the account name, account number, bank details, and IFSC code from the KSFE branch.

    The system we follow is this. We send the monthly installment details to the customer through email. We have already sent our bank details to the customers. They send the required amount to our account and send us an email. We check our bank statement and transfer fund to the respective account of the customer.

    Please bear in mind that this facility is not supported in all the branches of KSFE.

  17. I would like to take housing loan from KSFE. (house with plot) shall i know what is the formalities and required documents,status etc.. presently i am working in dubai. as warehouse in charge at jaleel holdings one of leading fmcg compony in uae. expecting amount (10 lakhs) please give the details.. Appreciate your patient reading and looking forward to a response.

    nativity place -aluva (asokapuram)

    status - maried

    number of family members - mother,wife, daughter (1and half years old.)

  18. xxxx

    Sorry for the long delay in communication. We have had problems with our internet connection. Coming to your question, KSFE does offer housing loan. Interest rate is 10.5% for an amount up to 5 lacs, and 11% for loan amounts greater than 5%. The rate is yearly diminishing, not flat.

    The procedure is same as that of banks. You need to pledge the property documents of the property on which you are building a house. You have to produce land tax receipts, original property documents, possession and sketch documents, and encumbrance certificate for 14 years. These can be obtained from Village Office and Registrar's Office without much difficulty. The loan will be disbursed at different stages of house construction. No lump sum disbursement.

    On a side note, it would be better to consider the option of 100 month chitties as well. Kindly read this post when you have time:

    You need to provide your salary certificate and other sources of income.

    You may check with the manager of KSFE Aluva I - email: and mob: 9447797035.

  19. Hi

    I would like to know whether the KSFE is providing two- wheeler loan. IF yes then at what interest rate. I am planning to get a loan amount of 45000 for two years. The bike price is 1 lakh. Also like to know whether the loan is applicable if the bike is purchased from chennai or outside kerala. If yes, can you please convey what all procedures need to be done regarding the same..

    Thanks in Advance for reply...

  20. Unknown,

    We do have a vehicle loan for two-wheelers - Consumer/Vehicle Loan (CVL). The current interest rate is 15% (diminishing).

    No problem in purchasing from outside the state. You need to provide an invoice. We provide loans for up to 90% of the invoice amount. You can avail loan for any amount. You need to remit the margin money (which is the difference between the invoice amount and the loan amount) in cash in our branch. We shall provide a cheque for the total invoice amount in favor of the vendor who issued the invoice.

    Since you need only 45000, we do not see any problem.

    The maximum duration of the loan is 48 months. Please remember that you need to produce a security for the loan amount, which can be personal surety of government officials, gold, LIC policy, or FD.

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  23. Sir,
    Can i get the Federal bank bank details of your PUNALUR Branch, so that I can transfer my chit amount through FedNet?

  24. Hi,
    my nearest branch is irinjalakuda. please send me contact details of the nearest branch where online transfer facility is available.
    best regards,

  25. hi, I am from trichur, planning to star a chitty with KSFE, is there any fezility to check my CHITTI status online,
    example, total number of instalment paid, date, next payment date, discount received etc?

    I am staying abroad, and how do i make sure, the transaction are done properly by branch ?

    appreciate your immediate reply,

    1. This comment has been removed by a blog administrator.

  26. hi, I am from trichur, planning to star a chitty with KSFE, is there any fezility to check my CHITTI status online,
    example, total number of instalment paid, date, next payment date, discount received etc?

    I am staying abroad, and how do i make sure, the transaction are done properly by branch ?

    appreciate your immediate reply,

  27. Sir,
    I would like to get the bank details of KSFE Kalpetta branch, so that I can make online payment for my chitty instalmentments.


  28. Sir,
    I like to know,
    I like to start one chitty with prize money 200000.
    If i put that prize money as FD in KSFE itself with 10.25 %(as mentioned in KSFE site),
    will there be any Tax deduction for that FD?

  29. sir,
    I am in dubai,i want to join pravasibandhu chitty,how can i join,what are the benefits,how can i transfer monthly payment,

    1. This comment has been removed by a blog administrator.

  30. Sir, It's said that it is very difficult to get the prized amount. Is it true?

    Suresh TVPM


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