KSFE chitty – importance, Advantage  from home loans, no need of documents 


      Everyone has a dream to make a  house without any additional  obligations. Almost all people make a house with a loan. We may not always have the money we require to do/buy  certain  things .In these situations we go for the options of borrowing money from lenders. We usually depend on banks for loans. It is impossible for an ordinary person to complete a house without taking a loan. But if you take a loan you have to pay the EMI for many years to repay it. We have to pay double the amount of the loan.

     We will get different types of loans from banks . Personal loan is an unsecured loan used for multipurpose to meet immediate  needs.when a lender gives money to an individual with a certain guarantee. We should repay the money with certain interest rates. 

      Mainly a loan has three components.they are principal amount,interest rate,tenure. Most people borrowing  money from a bank.A Secured loans need collateral like salary certificates, income certificates for the money .In case unable to repay the loan, the bank reserves the right to utilize the collateral .Unsecured  loans do not need collateral.The bank checks the past relationship like the credit score of the person. The interest rates are also higher.

      But today we can see the difference  between bank home loans and chitty. In case we can take a loan of Rs 10 lakhs from a commercial bank. If you have a good credit score you will get a home loan at  6.7 % interest rates.  Credit score is a numerical expression based on analysis of a person’s credit files. It is a number between 300 to 850 that depicts a consumer’s credit worthiness.It is based on number of open accounts,total debts,repayment  history, etc.credit score is very important.  Banks give loans based on credit score.

      If you are taking a 10 lakhs home loan from a bank at 7.5 %. Monthly EMI is Rs 11,870 and total payable amount is Rs 14,24,420. It is in the case of a person with an average credit score.  But in the case of a normal man,they will get a home loan from co operative banks. They will get Rs 10 lakh at 12% interest  rates. The monthly payment  is Rs 14,347 and total payable is Rs 17,21,651.

      But we can take a 10 lakhs  loan and make  a house with a total repayment of Rs 4 lakhs or 8 lakhs and we can repay EMI at Rs 7500.we can use a chitty for this purpose.  We can take Rs 10 lakh from KSFE chitty and repay within 8 year 4 months. First month we should  pay Rs 10,000 only . Second month we should  pay Rs 7500 only. We will get a Rs 2500 dividend. Second to 50 months we should pay Rs 7500.  It is 100 months chitty. After that we should payRs  8000 to 10,000  . 

       Monthly payments  don’t  exceed 10,000.  So it is very profitable. We will get 10 lakh after 100 days . In chitty the foreman writes the name of each person on a paper and fold it. These chits are put in a vessel and mixed well. A person picks one chit and opens it, reading the name of the chit. That person  is the winner . It is removed from the vessel and repeats the procedure next time. 

        In case of multi division  chitty,all branches make a chitty. It has more members  than other chitties. They will select a lucky person and he gets the full amount. 100 people from 400 people get the full amount. We can withdraw money and use it. Otherwise you can create a fixed amount . You will get a good interest  rate from it. In normal chitty, you can participate  in an auction. You can make an extra amount from these chitties. We don’t pay interest. 

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