Multiple security options for receiving prize money will differentiate us from others. We offer vide range of security norms/options to our customers for prize money distribution. The Successful bidder/Prized subscriber can opt for any one of the following types of security either single or in combination to the satisfaction of the Company.
Gold ornaments as per the prevailing rate intimated from time to time by company and sufficient to cover the future liability will have to be offered as security for payment of Prize Money.
Fixed Deposits of any Nationalized/Scheduled/Small Finance Banks approved by the company will be accepted as security. The principal amount of the FD must be sufficient enough to secure the future liability. The deposits shall be in the name of the subscriber or in the name of any other person. The subscriber must obtain a lien charge from the bank. The Lien in favour of “Muthoot Pappachan Chits (India) Pvt Ltd” need to be noted in the bank’s records and same should be written on the original FD receipt by the bank. The original FD receipt will be held by the company.
Bank Guarantee from any Nationalized/Scheduled/Small Finance Banks approved by the company in the format prescribed by the company equivalent to the future liability will be accepted as security. The expiry date of the bank guarantee shall be 3 months after the termination date of the Chit group.
Paid up subscription in Non-Prized chits by Pledge of pass book
The paid-up amount in the Non-prized pass books of self (other than the prized chits) or by a third person will be accepted as security. The paid-up amount should be more than the future liability amount plus interest at prevailing rate as prescribed by the company till the termination of the non-prized Chit offered as security. The non-prized passbook should be pledged in favour of the company and the same will held by the company until the liability in the prized chit is fully cleared. The Non-prized subscriber whose Chit is already pledged will be allowed to participate in auction only after the pledge is cancelled by the company.
Assignment of Life Insurance Policies
Life Insurance Policies, the surrender value of which is equal to the future liability of the Chit can be accepted as security. The subscriber need to obtain Surrender Value certificate of the Policy from Insurance Company. The subscriber must get the policy assigned from Insurance Company in favour ‘Muthoot Pappachan Chits (India) Pvt Ltd and upon receiving the assignment confirmation from the insurance company, file will be processed to disburse the prize money.
The original policy along with surrender value certificate will be held by the company. The subscriber should continue to remit premium in respect of the insurance policy without default. In case of unit linked policies (market plus, money plus etc), only 50% of the surrender value will be considered as it fluctuates depending up on the market conditions.
Pledge of National Savings Certificate, Kisan Vikas Patra
NSC and KVP shall be accepted as security subject to noting the pledge/lien in favour of Muthoot Pappachan Chits (India) Pvt Ltd. The face value should be sufficient enough to cover the future liability. The subscriber must get necessary pledge/lien mark from respective department.
Personal security is accepted for future liability up to Rs.10 lakhs subject to the full discretion of the company. Surety can be of three permanent Local Government Servants on submission of computerized pay slips/ salary certificates with Disbursing Officer attestation, each drawing an unencumbered minimum monthly basic pay as prescribed by the foreman.
Surety of permanent local employees in other companies and institutions, who have put in at least 7 years of service with provident fund, gratuity and other benefits, drawing basic pay as stated above on submission of computerized payslips/salary certificates with disbursing officer attestation, may also be accepted as sureties at the discretion of the foreman.
Both Govt/Private employees should submit proof of age and period of service completed along with proof of residence like ration card, telephone/electricity bill, etc.
Surety can be of Three local businessmen having secured and established business for at least ten years and documentary proof of business established, proof of residence such as ration card, telephone/electricity bill etc., and also proof of income tax assessment record for at least 5 years period and such people should produce documentary proof of their income i.e., latest three Income Tax Assessments along with audited profit and loss account and balance sheet and adjusted statement of total income certified by the Auditor, Sales tax assessment order etc., to the verification and satisfaction of the Foreman. Sureties of both husband and wife or partners of one firm are not acceptable. Only businessmen who own immovable properties are acceptable on submission of photo copies of Sale Deed with latest house tax receipt
Registered Mortgage of Immovable Property
Mortgage of local immovable urban house property of either the prized subscriber or a third-party guarantor(s) on submission of originals of sale deed, approved plan, link documents, encumbrance certificate for 13 years, latest tax paid receipts etc., as security together with the personal guarantee of a person acceptable to the foreman. The value of the property should exceed by one and half times of the amount due from the prized subscriber.
All the above options/conditions are subject to change at the sole discretion of the company.