When searching for financial products in Kerala, no other can be as popular than KSFE Chitty schemes. These schemes, backed by the government, provide both an investment facility and a loan, hence becoming very popular with the masses. In this guide, we will deeply look at KSFE Chitty schemes list, types, and procedures on how to join the same. We will also talk about the benefits of these schemes and guide you through a step-by-step process on how you can join.
Table of Contents
What Is a Chitty?
Before we dive into the details of KSFE chitty schemes List, let’s first understand what a “chitty” is. A chitty, or “kuri” in Malayalam, is a traditional savings and borrowing system. This means that in simple terms, a group of people agree to give the same fixed amount of money at certain periods. The total pool of funds from the contribution is pooled together, and this sum is given out to a selected subscriber, which happens according to some sort of process. The subscriber could win the auction and gain the sum of the pools before time, while others have to wait for their turn.
It has been in the practice for centuries in Kerala and is now widespread in other parts of India. However, chitties are still most synonymous with Kerala, where it is considered a highly reliable source of financing and investment.
What Is KSFE?
Kerala State Financial Enterprises, also known as KSFE, is a state-owned financial institution that was established in 1969. Its main activity is the running of chitty schemes. Chitty schemes are essentially a form of collective investment and lending system. Over the years, KSFE has garnered the trust of millions of customers through its reliable, transparent, and well-regulated chitty schemes.
KSFE stands out from the other private financial institutions in so far as the Kerala state government owns it totally. And this adds extra credibilities and security for its subscribers. KSFE is large in the non-banking financing sector in Kerala that besides Chitty products it provides wide range of insurance and Pension schemes.
Kinds of KSFE Chitty schemes List
KSFE offers various types of chitty schemes, each designed to cater to different financial needs. Here are the most popular KSFE chitty schemes:
1. KSFE Pravasi Chitty
Overview: KSFE Pravasi Chitty is a special scheme for Non-Resident Keralites who want to be in tune with their motherland even as they avail of a chitty facility. KSFE Pravasi Chitty is convenient for those who wish to contribute to the chitty system from abroad since it allows NRKs to contribute to the chitty system from abroad
Features:
Mobile App and Online Platform: Subscribers can manage their accounts, pay, and even place auctions through an online platform as well as a mobile application.
Insurance Coverage: Insurance coverage is also made available under the scheme such that subscribers and their families are kept in good financial standing.
Ease of Payment: Contribution of NRKs will be made through online banking to make it easy to make contributions regardless of one’s location.
The KSFE chitty offers several attractive features:
| Feature | Description |
|---|---|
| Risk-Free Investment | Governed by the Chit Funds Act, ensuring legal compliance and security. |
| Flexible Tenures | Duration ranges from 30 to 120 months. |
| Wide Range of Installments | Monthly contributions from ₹1,000 to ₹6,00,000. |
| Multidivision Chitty | Offers multiple auctions and draws, increasing participant opportunities. |
| Foreman Commission | A fixed 5% commission for managing the chit. |
| Dividend Distribution | Discounted amounts during auctions are distributed as dividends to all members. |
Why Invest in KSFE Pravasi Chitty?
NRKs mostly look for a safe mode of investment in Kerala. The KSFE Pravasi Chitty helps it to do the same but with maximum flexibility in contribution and management. The scheme is highly beneficial as there is a provision for insurance. That way, the subscribers are assured of mental peace of their family.
2. KSFE Galaxy Chits
KSFE Galaxy Chits has been in very demand for the attractive prizes up for grabs by its subscribers. The scheme is divided into several series through which the year runs. Many series of prize money come, keeping subscribers on the roll even to enjoy the feel of getting prizes.
Galaxy Chits Types
KSFE Galaxy Mega: This is the most premium chitty with higher subscription and prize pools. It promises bumper prizes such as luxurious cars and big cash awards.
KSFE Galaxy 100: It is a mid-category chitty offering moderate contribution with equally attractive prizes in the form of gold coins and small cash awards.
KSFE Galaxy Mini: This is a small category chitty for those who wish to spend less but will still enjoy good prizes and benefits.
Why Select KSFE Galaxy Chits?
KSFE Galaxy chits are a good opportunity for people who want to join a chitty scheme that gives them a probability of getting huge prizes. The subscribers would enjoy big cash rewards and many more incentives through savings.
KSFE Galaxy Chits Offers and Validity Periods with Prizes:
| Field | Details | Date |
|---|---|---|
| Name of Scheme | KSFE Galaxy Chits | |
| Period | 1st April 2024 to 28th February 2025 | 1st April 2024 to 28th February 2025 |
| Scheme Includes 3 Series | – KSFE Galaxy Chit Series-1 (KGC-S1) | April 2024 to June 2024 |
| – KSFE Galaxy Chit Series-2 (KGC-S2) | July 2024 to October 2024 | |
| – KSFE Galaxy Chit Series-3 (KGC-S3) | November 2024 to February 2025 | |
| Prize Structure | Mega Bumper Prize (for all 3 Galaxy Chit Series) | |
| – Mercedes Benz Car or Rs. 75 Lakhs* (1 No.) | ||
| Bumper Prizes (for all 3 Galaxy Chit Series) | ||
| – Toyota Innova Car or Rs. 25 Lakhs* (17 Nos.) for 16 Regions and 1 Digital Business Centre | ||
| Branch Level Prizes | KSFE Galaxy Chit Series-3 (KGC-S3) | |
| – Gift Cards worth Rs. 5000* (5000 Nos.) (1 winner in each Chitty) |
3. Long-Term and Short-Term Chitties
Long-Term Chitties: KSFE provides long-term chitty schemes, which may vary from 60 months to 120 months. Such schemes are best for people who want to invest long term and get good returns for a longer period.
Advantages of Long-Term Chitties:
Higher returns because of longer time duration.
Fixed monthly installment.
Longer periods increase the payout, thus helping to save for the future expenses such as education or retirement.
Short-Term Chitties: A short-term chitty typically takes a period of between 30 months and 60 months. This scheme is most suited for those who want money fast. In fact, with these schemes, one gets prize money quicker than that in long-term chitties.
Benefits of Short-Term Chitties:
Access to the fund will be faster as the need may arise anytime soon.
These chitties mostly have lower prize money, therefore suitable for those who have a balance between savings and quick returns.
4. Multidivision Chitty
Description: The Multi Division Chitty is an intriguing version of the traditional model of chitty. With this scheme, multiple divisions are possible, meaning every month, multiple prizes get drawn.
| Chitty Type | Duration (Months) | Maximum Discount (%) |
|---|---|---|
| Single Division | 30–120 | 30 |
| Multidivision (60-99) | 60–99 | 35 |
| Multidivision (>100) | >100 | 40 |
Advantages
Increased chances of winning, in this case, as different divisions are involved.
Subscribers can participate in various auctions, which makes the scheme more engaging and rewarding.
Why Choose a Multidivision Chitty?
For those who are excited by increased participation, the more opportunities to win prizes mean this chitty is sure to be an exciting one for subscribers.
How KSFE Chitty Schemes List Work?
The working of KSFE chitty schemes is based on a simple yet effective mechanism as given below:
Formation of Group: Some individuals or customers come together and contribute a certain sum at regular intervals.
Pooling of Contributions: These contributions are put together and create what is called a “chitty salary.”
Auction to Be Held Monthly: Every month there is an auction to decide who will take how much prize money. It goes by the logic that the person bidding the highest discount wins.
Dividend: The amount of the bid distributed among all participants.
The Following is an Example of a KSFE Chitty Auction
Let’s say a chit of 50 members with ₹1000 monthly contribution. So the total value of the chitty is ₹50,000. If a member gets the prized amount by offering a discount of ₹10,000, then in his share he will receive ₹40,000. The balance ₹10,000 will be given to the chit as dividend.
How is the Line of Control Over Branches Structured?
KSFE runs its operations through a network of branches all over Kerala and beyond to reach its subscribers easily. The head office and branch management are designed as follows:
Head Office:
KSFE Head office is in Thiruvananthapuram, and key policy decisions are made from here along with administration. The head office is coordinating all activities at the branch level so that everything happens in compliance with regulations.
Regional Offices:
For better efficiency and localized service, KSFE has its regional offices in key cities like Kochi, Kozhikode, and Kottayam. A group of branches is covered by regional offices, which give the strategic direction.
Branch Level Operations:
At the branch level, operations are independently carried out, such as handling customer transactions, maintaining chitty schemes, and new schemes. Managers at the branch level have to deal with day-to-day activities and customer relationship.
Online Branch Access:
With advancements in technology, KSFE also offers online branch services. Customers can register for schemes, track their investments, and participate in auctions through the KSFE mobile app and website.
The Corporate Office of KSFE is at Thrissur. KSFE has 16 Regional Offices viz.,
- Alappuzha
- Ernakulam Rural
- Ernakulam Urban
- Kannur
- Kattappana
- Kollam Rural
- Kollam Urban
- Kottayam
- Kozhikode Rural
- Kozhikode Urban
- Malappuram
- Palakkad
- Pathanamthitta
- Thiruvananthapuram Rural
- Thiruvananthapuram Urban
- Thrissur,
for coordinating and controlling the branches.
How to Join KSFE Chitty Schemes List?
Joining a KSFE chitty is simple, and there are several ways to sign up. Here’s how you can get started:
Offline Registration:
Visit your nearest KSFE branch and register for a chitty. The staff will assist you in the process, guide you to the proper scheme, and help you in filling up the required forms.
Online Registration:
KSFE offers an easy-to-use online registration system through its official website and mobile app. You can select a scheme that fits your needs, fill out the necessary forms, and complete the payment process online. This method is particularly convenient for NRIs and others who are unable to visit a branch in person.
Required Documents:
- For NRIs: Passport, visa, and address proof.
- For Residents: Aadhaar card, voter ID, and proof of residence.
How to Register for the Pravasi Chitty Online?
For Non-Resident Keralites (NRKs), registering for the KSFE Pravasi Chitty has been made easier with the online platform. Here’s how to register:
- Visit the Official KSFE Website: Go to the official KSFE website and select the Pravasi Chitty section.
- Complete the Registration Form: Fill out the online form with personal details such as your name, NRI status, contact information, and the scheme you want to join.
- Upload Documents: Upload your passport, visa, and any other relevant documents as per the requirements.
- Make Payment: Choose the payment method (online banking, debit/credit card) to make your initial contribution.
- Confirmation: Once the registration and payment are confirmed, you will receive a notification, and your account will be activated.
KSFE Chitty Schemes List Patterns and Information
Every KSFE chitty scheme follows a particular pattern that determines how the money is collected, managed, and distributed among subscribers. Here’s how these patterns generally work:
Contribution Pattern: Every member contributes a fixed amount every month. Monthly contribution varies according to the type of chitty. For instance, long-term chitties may attract a higher monthly contribution than the short-term chitties.
Auction Pattern: The most exciting pattern of a chitty is an auction. At the end of every month, the subscribers hold an auction, where they bid for the pooled funds. The prize amount is offered at a discounted price in this discounting auction method.
Prize Distribution: The pooled money is given to the winning bidder, and other subscribers get their money when it is their turn. In some chitties, prize distribution also contains bumper prizes such as cars, gold, or cash.
Security for Availing Prize Money
In any ksfe chitty schemes list, security is crucial. This will ensure that the subscribers can pay their dues even if they win the prize amount. Some common security options are listed below:
Personal Surety: Many subscribers offer a salary or an employment guarantee as security.
Gold or Property Pledge: Subscribers can pledge their gold ornaments or property as security.
Bank Guarantee: Another form of security is through a bank guarantee, which is often used for larger chitties.
Advantages of Joining KSFE Chitty Schemes List
There are numerous benefits to participating in KSFE Chitty schemes list. Here’s why people continue to choose KSFE:
Government-Backed Security: Since KSFE is owned by the Kerala government, the schemes are highly secure and transparent.
High Returns: The long-term chitties offer higher returns on your investment, making them an attractive option for wealth accumulation.
Flexible Payment Options: Whether you choose short-term or long-term chitties, KSFE provides flexible payment options to suit your needs.
Prizes and More Rewards: There are schemes with bumper prizes such as a car, cash award, and other incentives, so the participation becomes exciting.
Insurance Coverage: There are KSFE Pravasi Chitty schemes that provide insurance coverage. This gives subscribers more financial security.
Conclusion
KSFE Chitty schemes list are a unique, safe, and exciting way of saving and investing. If you are looking for a safe investment with long-term returns or seeking an opportunity to win bumper prizes, KSFE has something for everyone. With its flexible payment options, government backing, and transparency, KSFE chitty schemes remain a popular choice for millions.
Frequently Asked Questions (FAQs) About KSFE Chitty Schemes List
1Q. How can I select the right one from KSFE chitty schemes list?
Ans: Select a scheme as per your investment goals. If you are looking to achieve higher returns in the long run, opt for long-term chitties. For faster liquidity, short-term chitties are more appropriate.
2Q. Are KSFE chitty schemes safe?
Ans: Yes, KSFE is a government-owned organization that makes its chitty schemes very safe and reliable.
3Q. Can NRIs join KSFE chitty schemes?
Ans: Yes, NRIs can join KSFE Pravasi Chitty, an exclusive scheme for non-resident Malayalees.
4Q.What papers are required to invest in KSFE chitties?
Ans: For people residing within the country, an Aadhaar card along with address proof is mandatory. People who are residing abroad are required to submit a passport and visa.
5Q. What is the mechanism of auction in KSFE chitty schemes?
Ans: A subscriber bids for a share of the accumulated amount. The highest bidder gets the prize money and the remaining subscribers continue contributing till his turn comes.