Monday, 27 February 2012


The Kerala State Financial Enterprises Limited
Due details of Chitties for Mar 2012 Phone No 0466 2212158
Sl No Chitty No Class Inst.No Auction Date Duration Inst. Amnt Au. Chittal Time
1 4/2009 A 38 05/03/2012 50 950 26 12-Noon
2 24/2009 A 27 05/03/2012 40 2,423 28 12-Noon
3 11/2010 A 25 05/03/2012 30 1,000 2 12-Noon
4 12/2010 A 23 05/03/2012 40 2,450 6 12-Noon
5 18/2010 A 18 05/03/2012 40 2,247 13 12-Noon
6 9/2008 A 49 06/03/2012 50 1,000 32 12-Noon
7 9/2011 A 8 06/03/2012 50 7,500 6 12-Noon
8 10/2011 A 7 06/03/2012 50 1,766 3 12-Noon
9 11/2011 A 6 06/03/2012 60 3,750 20 12-Noon
10 18/2011 A 5 06/03/2012 50 7,500 31 12-Noon
11 9/2005 A 78 07/03/2012 100 2,894 50 12-Noon
12 8/2008 A 49 07/03/2012 50 10,000 19 12-Noon
13 2/2011 A 14 07/03/2012 100 7,500 7 12-Noon
14 6/2011 A 10 07/03/2012 40 2,250 20 12-Noon
15 19/2011 A 3 07/03/2012 60 3,750 60 12-Noon
16 1/2005 A 86 08/03/2012 100 1,000 29 12-Noon
17 25/2008 A 40 08/03/2012 50 1,960 17 12-Noon
18 16/2009 A 31 08/03/2012 40 4,985 10 12-Noon
19 17/2009 A 31 08/03/2012 50 1,914 35 12-Noon
20 19/2009 A 30 08/03/2012 40 24,500 3 12-Noon
21 11/2009 A 32 09/03/2012 50 1,904 5 12-Noon
22 18/2009 A 30 09/03/2012 50 969 27 12-Noon
23 4/2010 A 26 09/03/2012 50 1,880 40 12-Noon
24 8/2010 A 25 09/03/2012 50 990 41 12-Noon
25 27/2010 A 16 09/03/2012 40 2,172 32 12-Noon
26 3/2006 A 73 12/03/2012 100 924 44 12-Noon
27 13/2008 A 45 12/03/2012 50 2,000 50 12-Noon
28 7/2009 A 35 12/03/2012 50 1,000 10 12-Noon
29 10/2009 A 32 12/03/2012 40 4,974 10 12-Noon
30 9/2009 A 32 12/03/2012 50 998 8 12-Noon
31 21/2009 A 28 12/03/2012 50 1,895 11 12-Noon
32 5/2010 A 26 12/03/2012 30 5,000 28 12-Noon
33 9/2010 A 25 12/03/2012 30 5,000 3 12-Noon
34 10/2010 A 25 12/03/2012 25 4,000 15 12-Noon
35 13/2010 A 22 12/03/2012 40 2,436 16 12-Noon
36 19/2010 A 18 12/03/2012 100 3,750 85 12-Noon
37 25/2010 A 17 12/03/2012 50 2,648 2 12-Noon
38 26/2010 A 17 12/03/2012 30 9,495 29 12-Noon
39 16/2011 A 5 12/03/2012 60 3,750 30 12-Noon
40 17/2011 A 5 12/03/2012 40 2,075 4 12-Noon
41 2/2012 A 3 12/03/2012 40 3,750 16 12-Noon
42 1/2009 A 39 13/03/2012 40 2,500 26 12-Noon
43 20/2009 A 30 13/03/2012 100 3,750 46 12-Noon
44 15/2010 A 19 13/03/2012 40 4,500 4 12-Noon
45 1/2012 A 3 13/03/2012 40 1,875 7 12-Noon
46 22/2008 A 42 14/03/2012 50 1,000 42 12-Noon
47 20/2010 A 18 14/03/2012 50 900 19 12-Noon
48 28/2010 A 15 14/03/2012 50 890 44 12-Noon
49 4/2012 A 2 14/03/2012 40 1,975 14 12-Noon
50 10/2008 A 49 15/03/2012 50 1,000 5 12-Noon
51 14/2009 A 32 15/03/2012 50 956 9 12-Noon
52 15/2009 A 31 15/03/2012 50 9,540 33 12-Noon
53 29/2010 A 15 15/03/2012 40 4,225 25 12-Noon
54 30/2010 A 15 15/03/2012 50 15,000 35 12-Noon
55 24/2008 A 40 16/03/2012 50 1,000 2 12-Noon
56 14/2010 A 20 16/03/2012 50 8,310 43 12-Noon
57 14/2010 B 20 16/03/2012 50 930 89 12-Noon
58 8/2011 A 10 16/03/2012 40 3,997 17 12-P.M
59 12/2011 A 6 16/03/2012 40 4,072 29 12-Noon
60 12/2011 B 6 16/03/2012 40 2,088 69 12-Noon
61 19/2008 A 42 17/03/2012 50 1,980 20 12-Noon
62 22/2009 A 28 17/03/2012 40 4,673 26 12-Noon
63 1/2011 A 15 17/03/2012 50 1,689 27 12-Noon
64 13/2011 A 6 17/03/2012 50 1,500 37 12-Noon
65 14/2011 A 6 17/03/2012 50 778 40 12-Noon
66 5/2008 A 50 19/03/2012 50 1,000 15 12-Noon
67 16/2008 A 43 19/03/2012 50 2,000 11 12-Noon
68 16/2008 B 43 19/03/2012 50 1,000 74 12-Noon
69 21/2008 A 42 19/03/2012 100 3,750 97 12-Noon
70 13/2009 A 32 19/03/2012 40 2,487 24 12-Noon
71 23/2009 A 28 19/03/2012 50 948 15 12-Noon
72 16/2010 A 19 19/03/2012 50 1,736 37 12-Noon
73 22/2010 A 18 19/03/2012 50 927 35 12-Noon
74 23/2010 A 18 19/03/2012 40 4,619 29 12-Noon
75 24/2010 A 18 19/03/2012 50 1,770 32 12-Noon
76 3/2011 A 14 19/03/2012 100 750 56 12-Noon
77 4/2011 A 14 19/03/2012 40 4,222 28 12-Noon
78 14/2008 A 45 20/03/2012 50 1,000 3 12-Noon
79 2/2009 A 39 20/03/2012 40 25,000 33 12-Noon
80 5/2011 A 14 20/03/2012 50 907 18 12-Noon
81 3/2012 A 3 20/03/2012 100 11,250 69 12-Noon
82 7/2012 A 2 20/03/2012 60 3,750 7 12-Noon
83 9/2006 A 65 21/03/2012 100 1,779 17 12-Noon
84 3/2009 A 39 21/03/2012 50 10,000 5 12-Noon
85 6/2009 A 36 21/03/2012 40 2,500 10 12-Noon
86 8/2009 A 35 21/03/2012 40 5,000 28 12-Noon
87 1/2010 A 27 22/03/2012 50 9,198 25 12-Noon
88 17/2010 A 19 22/03/2012 50 950 46 12-Noon
89 21/2010 A 18 22/03/2012 50 8,698 32 12-Noon
90 5/2012 A 2 22/03/2012 50 1,500 12 12-P.M
91 6/2012 A 2 22/03/2012 50 750 40 12-P.M
92 2/2010 A 27 23/03/2012 50 2,776 3 12-Noon
93 3/2010 A 27 23/03/2012 50 930 49 12-Noon
94 6/2010 A 26 23/03/2012 50 17,179 43 12-Noon
95 7/2011 A 10 23/03/2012 50 838 25 12-P.M
96 15/2011 A 6 23/03/2012 50 15,000 50 12-Noon

Thursday, 23 February 2012




[Based on an article by Advocate C Muraleedharan in the INDIAN VALUER (Journal of Institution of Valuers) Vol. XLII - June 2010]

(some parts have been edited)

[This may be of help to all who deal with Acceptance of Property as Security, and also to the General Public, who may fall victims of unscrupulous entities when they invest in Land]

INNOCENT purchasers of plots in many cases are victims of unchecked real estate promoters for the following reasons:

1. Ignorance

2. Impatience and anxiety

3. Inherent apathy to consult a properly qualified professional for proper guidance.

4. Self investigation without adequate knowledge and skill.

5. Trap by Realtors.

6. Fraud played by Realtors.

These elements are so mixed up that there cannot be a discussion on each of these factors separately.

The object of this article is not to frighten anybody or abuse anybody , but only to create an awareness to the issue.

It is not an exaggeration to say that there is quite an amount of illiteracy among the literates.

When they are confronted with a situation where they are supposed to have obtained certain basic documents that are essential; they will come out with excuses like: "I'm inexperienced. I've not purchased property earlier. I don't know about Documentation and Registration. I'm unaware about the requirements governing purchase of immovable properties.

No body can find fault with some body's ignorance.

But the question is:....If it is an ordinary Headache, you will go to a medical shop (or even a grocer who stocks such over the counter pills) and just purchase pop in a few Anacins, or Crocins or Action 500s.

Will you do the same way if you developed a Chest Pain?....


'Cause it is a matter affecting your LIFE.

Only if you CARE to THINK equally in your venture in purchasing a Property.

Investing your hard earned money without taking proper advice from a qualified professional is like attempting at self medication during critical ailments.

You may seek advice from Document writers or Advocate's Clerk,  which is just like approaching a quack to cure your Critical diseases.

Our Country follows the DEED SYSTEM of Registration of Documents. One must understand that a mere Registered Document is no proof of Absolute Title.

The Sub Registrars or the Registering Officers have no Authority to investigate the Title or the Right of the Excecutants of a Document that is presented for Registration.

They can refer the same for adjudication of proper Stamp Duty only if they are convinced that the Document in Question is deliberately undervalued.

There are several limitations on this power of Sub Registrars and they cannot use it arbitrarily. They have no Authority to refuse to register the Document nor can they withhold the Document after Registration.

People seem to believe and are also convinced that it will suffice if there is a Registered Document of Title. They don't realise that a Title Deed without proper Title (Right) is no good and that it could be only a waste paper. The possession of all title deeds including anterior title deeds is as important as possession of the property is, and that one without the other will tell upon the marketability of the title to their property.

The laws may be there in existence in the statute books, but the largeness of collective violations coupled with apathy of statutory authorities to prevent unlawful layout of house sites or construction even at inception fail to bring proper awareness There is also an unfortunate meek surrender by Government by offering regularisation schemes that are also not effectively implemented. Thus the apathy of statutory authorities coupled with the indifference of purchasers to care for investigation of legal title sought to be conveyed to them encourages large number of Real Estate Brokers who earn on another's savings without any accountability for them to anybody. This emboldens the real estate brokers to play havoc on many innocent purchasers.

Even worse is that after the sale of the properties, the real estate brokers can never be found. They will be busy else where, dealing with some other property. And even if they are found out, and asked about the documents of title and other details regarding the lineal descendants of the deceased original title holder, the cool indifferent answer will be "we have done everything properly. The project is over and we don't have any papers with us. They have all been handed over" - to whom? nobody will ever know. And no body can know what all documents were handed over, and the poor purchaser will be running after the document writers- to the Registrar's Office etc. to get certified copies, where again they will be exploited. A certified copy issued by Sub Registrar's Office can never be a substitute for the Original title deed.

There is confusion among the general public between investigation of Title and Documentation. They think that Document writing is itself investigation of Title, and they depend upon pseudo professionals like Document Writers and persons like Advocate's Clerk, perhaps feeling that they are the best at investigating title. Even if the Document Writer scribes the document, the purchasers in their best interest should consult a professional who has an active practise, after which he may proceed to get the document engrossed on stamp paper of proper value and submit the same for Registration.

But no one really does this. May be to reduce cost. (whose cost?)

Hence the net result is the purchase of a property without knowing who the real owner was, and whether the person reported to be the real owner is the only person who holds title or whether there are other stake holders or whether there is any other encumbrance on the property, and so on and so forth.

It is only when these purchasers go to a panel lawyer of a bank for obtaining a legal opinion to avail a loan, they are confronted with several queries attendant on the title. It is only then they realise that the real estate broker of the the site purchased a few years ago cannot be located, or the details of the previous owner cannot be obtained, or the lineal descendants of the previous owner (now deceased) are not obtainable, or they do not even know who the actual power of attorney holder was. In many cases the power holder would be a close accomplice of the real estate broker. So the actual person who was instrumental in the sale of the property would never be in the record at all. However he would have reaped the benefits of the transaction sumptuously. The signatory would disown his present day connection with the real estate broker. In many cases, the purchasers do not even know who the actual owners are. They fail to collect the details from the Original owners.

There are several instances of fake documents, wrong title and unlawful constitution of power of attorneys so on and so forth. There will be nothing on record to punish the wrong doer - viz. the real estate broker. He will block the land by payment of some advance amount and hook the owner of land under an agreement of sale. He will take a power of attorney from him in the name of his aid or accomplice. One may not know whether the excecutant of the power of attorney deed is dead or alive on the date of execution of the sale deed, which takes place after a long time. They may not be aware that a power of attorney dies on the death of the executant or that the executant can terminate it at any time.

This is a defective system of Registration of Power of Attorney Deeds, which is registered under Part IV of Indian Registration Act, which does not provide for Registration of General Power of Attorney Deed. The only word employed is authority to adopt. Other than this, there is no scope for construing a General Power of Attorney Deed to be brought within the ambit of Part IV of Indian Registration act. Yet it is being registered under this part of Registration Act. This part deals with the Registration of Privileged Documents like WILL, authority to adopt, etc. Certainly a Deed of General Power of Attorney cannot fit in within this frame. Yet practise has made the law.

The main difficulty is, if a person applies for Encumbrance Certificate, this Registered GENERAL POWER OF ATTORNEY DEED will not reflect in the EC.

At times, fraudulent power of attorney deeds are created and registered. The really affected person will not even know that his land situated elsewhere is being transferred through fake documents. This is possible because there are takers of property without any care to investigate into the title and verify availability of original anterior deeds. A certified copy issued by Sub Registrar's Office can never be a substitute for the Original.

But who has the patience to see all this and then buy the plot? Hence there is a substantial possibility of sale of some body's property without even the Owner knowing of it on the basis of fake Power of attorney deeds.

The unhealthy competition among the Real Estate Brokers does not permit them to make any investigation and enquiry. After all they do not have anything to lose. They earn on some body's name sell and go away.

A purchaser of Land does not even take the amount of care they would in purchasing vegetables or fish for their home. It is this indifference and deliberate lack of care or knowledge coupled with anxiety of these 'innocent' dreamers that is the capital of the Real estate brokers. Unless these blunders are realised, wasteful investment and frustration can never be avoided. Housewives can take a note of this and at least they can pester their husbands not to hurry in purchasing Land until the investigation of title is satisfactorily made by competent professionals.

Another gross misconception is misunderstanding the theory of adverse possession and fixing a flat 12 years of possession as a perfect mark of absolute marketable title. This is dangerously misleading. Even judicial decisions have not comprehensively defined adverse possession and it differs from case to case. Several decisions of Apex Court and High Courts lay down that the length of possession is hardly material. That being so, the unilateral conclusion by the Real estate Brokers or by innocent purchasers that 12 year long possession of properties gives title to the existing owner is again yet another pit fall that lands the purchasers in trouble.

INCIDENTALLY this is a NATIONAL problem. Even a poor wage earner's income is made accountable in this country. Whereas, the Real Estate people's income is totally unaccountable. Scarcely sometimes, income tax raids will be conducted in the house or office of the real estate magnates, who are reported to be politically well connected. News papers and electronic media will flash the news for some time, till they get some other hot news. Those who suffered the raids will condemn the raids as a political vengeance, and the officials will claim that important evidence was gathered. And the entire incident will slowly pass into oblivion. WHAT IS THE REMEDY????????

You may remember how unauthorised Chit fund business was going on in our State (and still is) . There was no way how the fraudulent promoters of these Chitties could be prevented. Unfortunately, subscribers did not worry about the accountability of the promoters and were madly throwing in their hard earned money into chitty transactions. Any Tom Dick and Harry could promote Chits and invite public at large to invest in them. A stage came when many a chitty promoter absconded with lots of money of the public, and the Government intervened and led to the formation of The Kerala State Financial Enterprises Ltd. KSFE by the Government of Kerala. Due to this intervention and enactment of the Kerala Chitties Act and Rules, every promoter of chitty is required to Register each chitty with the Ex-Officio Chitty Registrar (The Sub Registrars are designated as the Ex-Officio Chitty Registrars) Several mandates for running a chitty were stipulated. Firstly the promoter (Foreman) should register the chitty. He should furnish sufficient security for the Chit amount to the Registrar., Third, the bidding amount could not exceed a particular limit. Thus accountability created by the force of statute curbed the the entry of fraudulent players to a great extent. Now most of the states have enacted their own 'Chitty Acts' and the unscrupulous players have shifted their official presence to either Faridabad or Jammu and Kashmir, where there is no such legal enactment.

Likewise suitable legislation must be enacted to curb the unscrupulous play of Real Estate Agents. They must be made accountable, and they must be brought under the Income tax network, and also Service tax network. Sufficient security for recovery of tax must be ensured from real estate brokers.

It is imperative in the interest of a large number of people in this country who must be protected against exploitation this field. This is where Banks, KSFE, lawyers, and valuers play an important role. The physical verification of property is done by the Valuers. The lawyers verify the Title by making a thorough investigation. The bankers / KSFE play their role by the report of Valuers and opinion of the Advocates.

In their view, there are no compromise made on legal and statutory requirements.

Certainly properties so checked and accepted will form a good security for the Banks/ KSFE for mortgages created to secure loans / chitty.

This is the Official blog of the PATTAMBI Branch of the KSFE .

Contact Details:
Phone : 04662212158
Cell : 09447797178

email :

web :

KSFE is a Government of Kerala Undertaking.


As an alternative to the private chit promoters and with a view to socialise the chit fund business, the Government of Kerala took a decisive step in the year 1969 and started The Kerala State Financial Enterprises Limited (KSFE), as a fully Government owned Company. Beginning with Chitties, the company has over the years introduced several attractive schemes to cater to the needs of different classes of people.

Paying handsome returns to investors and lending money at lower rate of interest has been the service philosophy of the Company

From a Chit Company - to a Big Financial institution, the KSFE is a success story. The Company presently has a network of over 330 Branches spread throughout the state of Kerala. The Company mobilises savings of Households by instruments like Chitties, deposit schemes and channelises them to the needy for owning houses, and household durables, motor vehicles and equipments for self employment and provides finance for augmenting working capital needs of small traders.

All the schemes of the Company such as Chitty, Consumer/ Vehicle Loan (CVL), Gold Loan (GL), Fixed Deposits (FD), Sugama Deposits (Savings Account), New Housing Finance Scheme(NHFS), Trade Finance Scheme (TFS), New Chitty Loan (NCL), Reliable Customer Loan (RCL), Car Loan Scheme (CL) are unique and have comparative advantages over similar schemes of Banks or other Financial institutions, as is evident from the widening clientele. In this context, the Company is on the look out for more avenues to cater to the needs of various segments of population. Accordingly, KSFE has made strategical tie-ups with Western Union for Money Transfer (WUMT), and LIC of India for insurance business.


I. 1. Chitty Scheme:

Chitty is an indigenous household savings scheme with a loan facility built into it.
Chitties are also known as Chitty, Chit funds, Chitti, or Kuri.
There are more than 10 lakh subscribers in KSFE chitties conducted from the various branches with an aggregate monthly sala of more than 15 lakhs.

The following additional facilities are also available under the scheme:

i. Pass Book Loan: (PBL): is available to non-prized chitty subscribers depending upon the gross instalment paid up, the period remaining for the termination of the chitty etc., without producing any additional security for the advance.

ii New Chitty Loan (NCL): is an advance up to 50% of the sala available to Non Prized Chitty subscribers, subject to certain terms and conditions. Separate security for the advance as per the directions in force must be produced.

II. Advances and Loans :

2. Consumer / Vehicle Loan Scheme (CVL) :
With an object of providing advance facilities for the acquisition of consumer durables, vehicles, home appliances like TV, Refrigerators, Computers etc. on diminishing rate of interest and on easy repayment plans.

3. Gold Loan Scheme (GL) :
Short term advances up to Rs. 3,00,000/- for a maximum period of six months and the facility to renew up to two years subject to other conditions.

4. Trade Financing Scheme (TFS) :
For providing financial assistance up to Rs. 1,00,000/- to small traders, depending upon their requirements and repayment capacity,repayable with reasonable rate of interest within a maximum period of 60 months.

5. Reliable Customer Loan (RCL) :
For providing financial assistance to the general public on separate security repayable with interest applicable within 36 to 48 months.

6. Car Loan (CL) :
To provide loans for purchase of new four wheelers to a maximum of 85% of the 'on the road cost' to salaried persons having a net monthly pay exceeding Rs. 10,000/- and to self employed Professionals/ Businessmen/ IT assesses having an average annual total income exceeding Rs. 2,00,000/- for the three previous years, with a repayment period of 60 months (maximum)at monthly diminishing rate of interest depending upon the period of repayment opted.

7. Housing Finance Scheme (HFS) :
Finance under this scheme is available up to Rs. 4,00,000/- for purchase of dwelling sites and up to Rs. 10,00,000/-for purchase/ construction of dwelling houses/ extension of existing buildings beyond 300 Sq. Ft. on easy repayment terms extending for a period from 5 years (for purchase of dwelling sites) to 15 years in the case of purchase/ construction of dwelling houses.
Advances up to Rs. 2,00,000/- repayable within 84 months at reasonable rate of interest will be allowed for modification/ renovation and extension of existing houses. Extension/ renovation of existing houses up to 300 Sq.Ft. will be considered under this scheme.

III. Deposits :

8. Chitty Security Deposit in Trust Scheme (CSDT) :
Under this scheme, Chitty Prize money is accepted as security against future liability, repayable with interest on termination or on furnishing adequate alternate security. This offers a higher rate of interest.

9. Fixed Deposit Scheme (FD) :
The Company provides an attractive opportunity to the public to deposit profitably and safely through its Fixed Deposit Scheme which offers attractive interest rates. The repayment of deposits mobilised by the Company are guaranteed by the Government of Kerala. Loans up to 90% of the deposit amount is available at 2% above the rate of interest of the deposit.

11. Sugama Deposit Scheme :
This scheme envisages maintenance of personal accounts in the name of individuals, associations etc., in which deposits and withdrawals are permitted. The repayment of deposits and interest thereon (at present 5.5%) are guaranteed by the Government of Kerala.

IV. Other Schemes :

8. Western Union Money Transfer Services (WUMT) :
This is a venture with M/s. Paul Merchants Ltd. (Principal agent of Western Union) for providing an additional financial service to the public, whereby, people abroad can remit money to their relatives here, which they can receive without any delay.

9. Life Insurance (LIC) :
This is with an MOU with the Life Insurance Corporation of India to act as its Corporate Agent to enroll the general public to the various schemes of LIC.

The different types of Securities acceptable for our Chitty and Various Lending Schemes :

The following are the Securities/ Sureties acceptable:
a) Personal sureties inclusive of Professionals such as Doctors, Engineers, Chartered Accountants, Advocates etc.
b) Immovable properties
c) Government Securities
d) Fixed Deposits in KSFE and/ or Banks
e) National Savings Certificates (NSC)
f) Kisan Vikas Patra (KVP)
g) LIC Policies
h) Bank Guarantee
i) Paid up amounts in Non Prized KSFE Chitties
j) Gold jewels: (Provides public an easy way to secure the liabilities, and also serves as a free and safe Locker facility

You can find here, general information about KSFE chitties and subscription details of all running chitties of our branch.

If you are from PATTAMBI or nearby places, you are invited to our Branch to join our chitties and also to avail any advances you may need.

How To Join
To enroll in KSFE chitty, you need to submit a form, called CHITTY UDAMPADY. You can obtain the variola in person from our office. Or you can send us email to: or, or call (0)9447797178 or (0466)2212158. We will be sending you the application form (Chitty Udampady) by  post.

You can also leave a comment mentioning your email id and/or mobile number. We will get in touch with you.

Chitties now being enrolled

(Short Term - Below 5 years)

Monthly Duration Sala(`)
Subscription(`) (Months) (Gross Amount)
50,000                                40            20,00,000  
25,000 40 10,00,000
20,000 50 10,00,000
10,000 50 5,00,000
10,000 40        4,00,000
5,000 60 3,00,000
5,000 40 2,00,000
2,500 40 1,00,000
2,000 50 1,00,000
1,000 50 50,000

(Long Term - more than 5 years)

Monthly Duration Sala
Subscription(`) (Months) (Gross Amount ` )
15,000                            100             15,00,000
10,000 100 10,00,000
5,000 100 5,00,000

{CLICK HERE for Application form (Chitty Udampady) to join Chitty}

Any person who wants to have a recession-proof and steady-growing investment can join in chitties. We offer chitties of different patterns -different period - different monthly instalments ranging from Rs. 1,000/- to Rs. 50,000/-.


Frequently Asked Questions about KSFE Chitties

1. What are KSFE chitties?
Chitties (also known as Chitty, Chit funds, Chitti, or Kuri).
Chitty is an indigenous household savings scheme with a loan facility built into it. There are more than 10 lakh subscribers in KSFE chitties conducted from the various branches with an aggregate monthly sala of more than 15 lakhs.

2. Can I make on line transactions?
KSFE has not yet made any special arrangements for on line transactions on its own.

3. 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 most needy 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 instalment of Rs.2,500/-. The total amount collected is Rs. 1,00,000/- (Sala). The chitty lasts for 40 months and one person gets the prize money each month. KSFE Chits can be bid for an amount of discount up to 30% of the Sala including the Foreman's (KSFE) commission of 5%. In the first month, suppose the person who bids the chitty (usually through a draw of lots if the number of aspirants to bid for 30% discount are more than 2), gets Rs. 70,000/, that is a discount of Rs.30,000/- (i.e., 30% of the total amount). From this Rs.30,000/-, Rs.5,000/- (5%) is taken as commission and Rs.25,000/- is distributed equally among the 40 members. In this case, it comes to Rs.625/- (=25,000/40). So, the next month each member has to pay only Rs.1,875/- (=2,500 – 625).

This does not mean that a member has to pay only Rs.1875/- per month for the whole 40months. At a later stage, say after 20 months, suppose the person who wins the chitty gets Rs.85,000/- (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.15,000/-, from which Rs.5,000 is taken as the Foreman's commission and Rs.10,000/- is equally distributed among the 40 members. In this case, it comes to Rs.250/- (10,000/40). Each member has to pay Rs.2,250/- (=2,500 – 250). This is just an example, and the scenario varies for different denominations of Chitties.

4. Why Chitties, Why KSFE, and Why PATTAMBI Branch?

We, at KSFE Pattambi branch, do not make any fancy claims (like mutual funds, insurance companies, and other wealth management firms). We believe that 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.

Some trivia

Now something to relieve the tedium of algebra. One of our customers recently made an interesting observation. If you put Rs.2,500/- in a mutual fund, they will put about Rs. 1,875/- 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.1,875/- to KSFE, they will put Rs.2,500/- 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.

5. 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 instalment. You need to arrive at an amount that is profitable and bid for that amount. In the above example, suppose a person calculated Rs.90,000/- 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

6. Why KSFE?

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, which utilises it to carry out developmental work, running public service organisations, and providing care for the less fortunate and less privileged among us. The money you invest does not go to foreign countries, who use it for god-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.

7. Why PATTAMBI Branch?

This one is the toughest and trickiest question. Let us state that there are no special privileges for PATTAMBI branch. Rules and regulations are same for all branches of KSFE. But we can assure you our best attention in all your dealings with us.

Thanks for reading patiently. Please feel free to comment.