Pravasi Chit Fund of KSFE evokes good response in UAE

KOCHI: The pravasi chit fund launched by the Kerala government has evoked good response from the NRIs in UAE.

The fund for mobilising funds for the infrastructure development in the state has got 1.25 lakh leads from UAE within a fortnight of its launch, according to Kerala finance minister T M Thomas Issac.

Pravasi chit fund targeted at NRIs, is managed by Kerala State Financial Enterprises (KSFE).


Issac, speaking in the presence of UAE consul general to Kerala, Jamal Hussein Al Zaabi, at Thiruvananthapuram, said plans are afoot to make the fund completely halal financial instrument.

Though chit funds do not have interest, there is an element of speculation as one of the subscribers gets prize money through auction every month. The idea is to remove the process through an online consensus among the subscribers to make the fund totally sharia-compliant.

Issac said a survey had shown that non-resident Keralites would be interested in chit funds as they were not just a deposit scheme but also a means of credit for those in need of funds.

KSFE chairman Peelipose Thomas said the initial response to the scheme was extremely encouraging and that the scheme could be scaled up to cover more countries in the future.