Chit Funds and Informal Credit in India
Kerala's KSFE and Registered Chits
In Kerala, chits called kuri are common, and the state-owned KSFE is one of the largest chit operators in the country.
Some chit operators are large and reputable.
Kuri
In Kerala, chit funds are called kuri and are a common way to save and borrow.
KSFE
Kerala State Financial Enterprises, founded in 1969 and owned by the state, runs chits on a large scale.
Registered chits
Chits registered with the state registrar have legal protection and oversight.
Other big names
Companies such as Margadarsi and Shriram Chits also operate widely in the country.
A registered chit
A subscriber prefers a registered chit because disputes can be taken to an official.
Assuming every chit is safe
Unregistered ones carry more risk.
Key takeaways
- Chits are called kuri in Kerala.
- KSFE is state-owned.
- Registration gives protection.
- Several large firms operate chits.
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