KSFE CHITTY is a popular scheme advertised in print as well as visual media. They shows offers and benefits hiding lot of traps behind the smiling face. You will realize those issues only once you bid or while trying to claim invested money back. This is solely based on personal experience & data collected from those faced similar troubles.

KSFE CHITTY -HIDDEN TERMS/ TRAPS

1.KSFE COMMISSION

Normally all chitty will claim commission equal to our first installment. Eg: If our monthly installment is 5000, then first installment will be reserved as commission. You may need start bidding from that base price. BUT KSFE have an amount greater than usual offering to discount later.

Lets consider the case of 15 lakh chitty. You will need to pay 50,000 every month. BUT their commission is 75,000 ie, 50% additional to our monthly installment.

You should start calling from 75,000 and amount you will get after chitty period will be 14,25,000 only. You will lose 75,000 for sure.

Lesson: NEVER calculate profit of chitty based on 1 month EMI format. You will loss huge like 50% beyond limit. Note that there is further 10,000 deduction explained in point 7.

2. KSFE CLAIMING CHITTY PRIZE

You expect price to get in a week after calling. No | Expect after 2 weeks, NO | You will get only after a month. That means , you are paid only when all members pay next months installments. If you call chitty on JANUARY 1 2021, then you cant expect it before FEBRYARY 2021.

Lesson: NEVER EXPECT cash to be given immediately after calling chitty. It takes minimum 30 days!!

3. KSFE GUARANTEE FOR CHITTY

This is night mare for all who joined KSFE chitty. You will need to submit 10 years proofs of property holdings and lot of complicated papers. So, consider gold as guarantee, then it will need more weights than we assume. Then FIXED DEPOSIT papers, then you need to give lot of paper work and visits to nearby branch for approval.

Lesson: Claiming full amount needs work more than earning that amount. So option left is depositing there for interest they offer.

4. KSFE INTEREST FOR CHITTY WINNING

They wont entertain you to take money beyond you pay unless you give our land or gold. They will prompt us to keep remaining amount in their FIXED DEPOSIT FORMAT offering good interest rate while joining.

I was personally offered 7.75% for Fixed deposit while joining and later lowered to 7.25%. No doubt, 7.25% is better than normal rates by banks like SBI or similar. BUT the trap is that you wont get that interest offered due to following reasons.

1. CHITTY PRICE – Interest is not applicable for total prize we call. If you have 5 lakh to pay out of 20 lakh while calling, then they will offer interest for those 5 lakh remaining only. Those 15 lakh or rest you paid will be offered with a very low interest.
2. Interest is not applicable– As explained above, their good interest rate is applicable for remaining amount to pay. BUT that too wont be given. Suppose you call chitty when 12 months remaining. You will get money only while there is 11 months left.

lesson: Attractive interest rate is not applicable for whole winning amount. Market rate for winning amount beyond guarantee needed. (Guarantee means for rest of amount to pay) This is not applicable if time left is less than 12 months.

5.KSFE INTEREST RATES

If you have only 11 months remaining while calling chitty, then you cant deposit for 12 months and hence interest rate is 1% less than offered.  Don’t feel simple for 1% as 1% for 10 lakh is 10,000/-. We calculated reaming amount based on interest rate offered and they said that harsh truth that they wont give that interest as only 11 months remaining.

Lesson: Never call chitty with an eye on interest if months left is less than 12 months. They will deny deposit without any hesitation at the time we request for money.

6. KSFE-NEVER GET MONEY IN HAND

Hoping for getting cash in hand. Never happens. Either they will transfer to your bank account for future taxation or will give crossed cheque. Any way , you are supposed to pay tax for this winning money which you paid earlier from taxes money.

Lesson: Never expect winning money as cash. Transfer to account or cheque where both are liable for income tax.

7. KSFE CHITTY-TAX ON WINNING MONEY

After doing lot of paper work, we got our withdrawal approved. They promised to deposit money in my bank same working day. It hadn’t credited same day BUT got on next working day. BUT THE HARSH TRUTH IS 10,000 deducted . No mention about that deduction anywhere. I called managed and he told its GST for their commission.

Lesson: Never expect amount we call as winning money. They will reduce another 10,000 as GST. Note that its additional to commission they loot while joining.

LOT MORE UNTOLD TERMS AND CONDITIONS ARE THERE. . .

WILL ADD MORE BASED ON FEEDBACKS> You can also add your experience in comment box below.