Thursday, August 22, 2013
What’s new in KSFE chitties: Why 1 lakh x 30 months chits are low interest loans
There was a time when KSFE chits were low denomination schemes suitable only for the people in the lower to middle income bracket. Almost all people seeking large amounts of money used to go to banks or private lenders.
Over the last five years, KSFE has grown into a financial super market, catering to the needs of people in all income groups. The results have been encouraging. Many branches now start 1 lakh x 30 months chits.
What KSFE chitties offer that others do not
The lowest interest – that’s the speciality of this KSFE chitty. When you take a loan in excess of 20 lakhs, the prevailing interest rate is 12-20%, depending on the lender. That means you will have to shell out a minimum of 2.5 to 4 lakhs as interest per year. For a period of 30 months, you will have to pay something like 6.25-10 lakhs as interest.
When you avail prize money from this particular KSFE chitty, that is of 1 lakh x 30 months, you will get at least 21 lakhs. You will have to pay an amount of on average Rs. 27 lakhs. That means you have to pay only 6 lakhs as interest. That is the maximum amount, which in any case is lower than the minimum amount offered by banks.
Usually, you can get an amount of 25 lakhs or more, if you are prepared to wait for a few months. In that case, the amount of interest and the effective interest rate will be much lower for KSFE chitties than for bank loans or other forms of credit.
Please let us know if you want to join 1 lakh x 30 months chitty of KSFE Bhagyavarsha chitty scheme.
We, then at KSFE Attingal Evening Branch, started this blog in 2009. The one question we have been receiving for all these years is this (...
[This is an old post. For knowing more about the latest schemes of KSFE, visit this page .] The latest scheme in KSFE is Pravasi Ban...
Here is our notice. Please check the chitty patterns we are going to start and the special benefits of joining Pravasi Bandhu chitty scheme ...
We, at KSFE Attingal Evening branch, do not have any fancy claims (like mutual funds, insurance companies, and other wealth management firms...