Personal security is accepted for future liability upto Rs.15-lakhs. Employees of Central/ State/ Quasi-Government Departments/ Undertakings, employees of Government / Aided schools/ Plus two schools, colleges and employees of Nationalised/ Scheduled Banks and certain Co-operative institutions are generally accepted as sureties by the Company for its various schemes.

SALARY AND MINIMUM SALARY

• "salary" for this purpose include Basic pay plus D.A. (Dearness Allowance) and adhoc DA/increase and P.P (Personal Pay), if any
• "Minimum Salary" : Only full-time permanent employees who are drawing a minimum net-salary of Rs.5000/- will be accepted as sureties/guarantors.

CLASSIFICATION OF SURETIES

• SREG (Salary Recovery Enforceable Group)
• SRNEG (Salary Recovery Non-Enforceable Group)

SALARY REQUIREMENT NORMS

• SREG employees:The SREG surety (s)/guarantor(s) offered should have a minimum/combined salary of 10% of the future liability.
• SRNEG employees: The SRNEG surety(s)/guarantor(s) offered should have a minimum/combined salary of 12.5% of the future liability.
• Combination of Sureties/guarantors : When SREG employee and SRNEG employee are jointly offered as sureties/ guarantors they should have a combined minimum salary of 12.5% of the future liability.

GENERAL CONDITIIONS

• Sureties should be permanent residents of and working in Kerala State.
• They should be permanent/ officiating full time employees.
• The sureties should have at least 6 months service left for retirement after the termination of the period of liability.
• Maximum recovery from the salary limited to 60% of gross pay.

Property security inside the State of Kerala can be accepted as security, provided the title of the owner over the property is clear. The following documents will have to be presented while submitting property as security.

• Title Deeds and prior documents in original (for the past 13 years)
• Encumbrance certificate for the past 13 years
• Land Tax Receipt for the current year
• Building Tax Receipt, if there is a building on the property.
• Possession and enjoyment certificate
• Location Certificate and Sketch of the property.

Gold ornaments should be produced to any KSFE branch. The value applicable will be finalized by KSFE.

Fixed deposits with Nationalised Banks, Scheduled Banks, District Co-operative Banks, Co-operative Banks or any other Banks, having deposit insurance coverage and fixed deposits with KSFE. Ltd., either in the name of the subscriber/applicant or in the name of another person will be accepted as security for all our schemes.

LIC Policies, the surrender value of which, are equal to the future liability of the loan/chitty can be accepted as security. The LIC policy accepted as security in such cases can be in the name of applicant/subscriber or in the name of spouse or in the name of any other person. In such cases the policy should be assigned in favour of the company and the policy holder should be a co-bounden in the agreement.

At the time of acceptance, the issue price (face value) of the NSC's (VIII issue), should cover the future liability, ie. principal plus interest in case of advances and sum total of future instalments in the case of chitties. The interest for the loan amount is to be calculated till the maturity of the instrument or the remaining period of loan, whichever is longer. Forms prescribed by the Post Office are used for noting the lien.

In case the Kissan Vikas Patra is offered as security before the expiry of 30 months and after the issue of six months of the same, the certificate will be accepted for a future liability not exceeding 75% of the value of the certificate (i.e, purchase price).

If the Kissan Vikas Patra is offered as security after 30 months (i.e, expiry of lock in period) of the issue of the same, the certificate will be accepted as security for future liability worth the premature closure value of the certificate on the date of acceptance of the same as security.

Government Securities and Bank Guarantee can be accepted as valid security. The Bank Guarantee should cover an amount equal to one instalment more than the future liability. Also it should be valid for a period not less than three months after the termination of the liability.

The pass book of a non prized chitties can be acceped as security for the future liability of our schemes. Consider only the amounr remitted less propotionate foreman's commission. Then discounted @ default passbook loan interest rate for the period up to the termination of the chitty. The discounted amount can be accepted as Pass Book security. Lien will be noted on the passbook.