KSFE at a glance

Introduction
The Kerala State Financial Enterprises Limited, popularly known as KSFE,
# Is

# Is
# Is

fully
one

of

Miscellaneous
owned

the

most

by

Non-Banking
the

profit-making

public

Company,

Government
sector

of

undertaking

of

Kerala.
the

State.

# Was created by the Government of Kerala with the objective of providing an alternative to the
private chit promoters in order to bring in social control over the chit fund business, so as to save
the

public

from

the

clutches

of

unscrupulous

fly-by-night

chit

fund

operators.

# Has been registering impressive profits every year, without fail since its inception.
A striking point is that all the funds mobilised by KSFE through its various deposit schemes and
chitties are advanced wholly to the public in Kerala itself; whereas other financial institutions and
banks channel their deposits collected in Kerala for advances outside the State.

OUR VISION
To become a significant player in the financial services sector by
::

Providing a whole range of quality services and products.

::

Adopting technology and benchmark standards in customer service and

performance.

::

Spreading our wings beyond the borders of Kerala, on a global level.

::
::

::

Retaining the pre-eminent role in Chitty business.

Continuing focus on extending resources to the Govt. of Kerala.
Sustaining commitment to the weaker sections of society, as the neighbourhood
institution for support, trust and security.

KSFE pays to the Government of Kerala crores of rupees every year by way of:
# Guarantee
# Service

Commission
Charges

# Dividend
Upto 31.03.2016 an amount of Rs. 706 Crores has been paid on the above head of accounts.
Therefore, financially and service wise, KSFE contributes immensely towards the Kerala economy.
Beginning

# KSFE

was

created

# The

Paid

# Total

number

# The

by

the

up

capital
of

number

Government

of

then

branches

on

was

employees

of

Kerala

at
KSFE

6th

November

Rs.

the

start

began

1969.

with

Lakhs.
was

45.

was

10.

# The Head Office of KSFE is placed in Thrissur, the hub of Chitty business in Kerala.
Scenario (March 2016)
# Paid

up

Capital

is

Rs.

100

Crores.

# Total

number

of

employees

is

6426.

# The

number

of

branches

is

600.

# The

number

of

customers

is

more

than

33

Lakhs.

# Annual Business is Rs. 28,960 Crores.

Chitty
Chitty is the main product of KSFE.
It is a unique financial product, which blends the advantages of both investment and advance.
It is a risk free safe haven for the public as KSFE conducts only chitties fully governed by the
provisions

of

Central

Chit

Fund

Act

1982.

The instalment per month for chitties range from Rs. 1,000 to Rs. 5,00,000 and the usual
duration of chitties are 30 months, 40 months, 50 months, 60 months and 100 months.
Other Schemes Offered are given below:
1. Loans & Advances:
Although Chitty is in essence a loan/advance scheme, for subscribers whose chitties are not
getting prized and, at the same time they are in need of money, relief has been provided by two
loan schemes built within the chitty scheme, viz. Chitty Pass Book Loan and Chitty Loan.
KSFE offers other loan/advance schemes, comparable to those given by banks and other financial
institutions, and the same includes:
Gold Loan Scheme, KSFE Personal Loan, Consumer/Vehicle Loan, Special Car Loan, KSFE Housing
Loan, Flexy Trade Loan, Tax Planning Loan Scheme, Fixed Deposit Loan Scheme ,Sugama
(Akshaya) Overdraft Scheme, Vidyadhanam Education Loan Scheme and KSFE Haritham Loan
Scheme.
2.Deposit schemes:
Fixed Deposit, Short Term Deposit, Sugama Deposit (which is similar to the savings deposit in
Banks), Chitty Security Deposit-in-Trust and Sugama Security Account.
3. Fee Based Activities of KSFE:
1.Western

Union

Money

Transfer

as

sub

agent

of

Paul

Merchants

Ltd.

2.Xpress Money Transfer

4. Securities:
From chitty subscribers and customers who avail loans/advances of KSFE, KSFE accepts various
types of securities which include:
Fixed Deposits with KSFE or approved Banks, Bank Guarantee, NRI Deposits, LIC Policies,
National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Chitty Pass Book of Non-prized

Chitties, Gold Security, Personal surety and Property Security.

Future plans KSFE contemplates:
1. Centralised Chitty Registration.
2. Online Chitty Auction.
3. Chitty payments at the Door step of subscribers.
4. Opening Branches outside Kerala.
5. Spreading weekly chitties to all the KSFE branches.
6. e-remittance facilities for all customers.
7. Foray into the field of M-commerce.
8. Introducing ATM facilities and any time anywhere transaction facilities.
9. Implementation of core solutions software in the company.
10. Going for CRISIL rating to obtain FAAA.
11. Working as a Nodal Agency for distribution of pension of State/Central Government and other
PSUs.
12. Undertaking trading of Gold.