Tuesday, September 7, 2010

Why KSFE chitties are better than housing loans?

Not many people know that a long-term KSFE chitty is a wiser option than housing loans. When one takes a housing loan, the repayment period is over 10 years. Normally, the total amount (advance + interest) the subscriber repays would be double the loan amount. If you take 7 lakhs, you would be repaying close to 14 lakhs, unless you close the loan prematurely. One needs to provide the documents of the property in which the house is built as security for housing loans.

Now consider the case of a KSFE chitty that lasts for 100 months. Let us take a Rs. 10000 x 100 months chitty as an example. In this chitty 100 people can enroll and one person will get prize money each month. Normally, the prize winner is decided by the draw of lots for roughly about the first 40 months (after that, it would be bidding). The winner will get Rs. 7 lakhs. One can provide the documents of a property as security for getting the prize money. Or one can give other forms of security, such as personal surety of government officials, gold, fixed deposit certificates, LIC policies, or a combination of all these.

Another illustration is provided in the picture below.

The advantage is that you will have to repay only an amount between 8 lakhs and 8.5 lakhs (the total amount varies from chitty to chitty) after 100 months. Now do the math and find out how much money you save. Yes, that is right – you will save a minimum of 5 lakhs.

The liability arising from long term KSFE chitties is not only much lower than that of housing loans but it ends earlier too. Loans usually drag along for over 10 years. But a chitty will be over after 8 years and 4 months. And you will end up saving about Rs. 5 lakhs.

One question you might ask now is that why people are not joining chitties then. Who said they are not joining? Actor-director Sreenivasan and his multi-talented son, Vineeth Sreenivasan, are not the only ones to associate with KSFE. A number of people who know the secret behind KSFE chitties always join such schemes and tell their relatives and friends about it.

Now one might think about the timing. You get a housing loan within one or two months of submitting the application. But you will get a 100-month KSFE chitty only when you win the draw of lots. Isn’t that a problem? Well, we have solution for that too.

We offer loans (called New Chitty Loans) for the customers who are in urgent need of money. When they win the chitties, the prize money is transferred for closing the loan. Many knowledgeable customers solve this problem by themselves. They join a chitty well in advance and start building the house when they win the draw of lots. KSFE chitties bring good luck charm to many people for building their cherished homes.

To add value further, KSFE is now offering a number of prizes as part of the Ponnonachitti campaign. The offer lasts only for a few more weeks. Now is the best time to put that small step ahead towards your journey to own a home. Contact us at 286@ksfe.com for further details.

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