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.

Better benefits

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.

Come, join

Please let us know if you want to join 1 lakh x 30 months chitty of KSFE Bhagyavarsha chitty scheme.

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