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Times News Netwrork

Date Of Publication:

December 11, 2013

Kerala State Financial Enterprises launches Educare chit scheme
TNN Dec 11, 2013, 06.28AM ISTTHIRUVANANTHAPURAM: The Kerala State Financial Enterprises has launched a new chit scheme aimed at school students that will help them find monetary backing for their higher education. The ‘Educare’ scheme aimed at students of classes five to 10, was launched here by finance minister K M Mani on Tuesday. The scheme was announced in the state budget of 2011.”The launch of the scheme was delayed because we had to wait for clearance from the Reserve Bank of India. Now that the clearance has been obtained, we are moving ahead with the scheme that will also hopefully help develop the habit of saving money among the students,” KSFE chairman P T Jose said.The scheme will be initially launched in seven schools selected from as many KSFE regional centers across the state. “By the next academic year, we hope to spread the novel initiative to more schools, and subsequently will be launched in all the schools in the state,” he said. The scheme will provide a handsome sum to students once they complete 12th standard and the money can be used to meet his/her higher education expenses.The chit scheme will be open only for the students from five to 10, and it will be operational till the students complete 12th standard. “This means that a 10th standard student who joins the scheme will make 36 installments of payment in the scheme by the time he completes 12th standard,” he said. The minimum monthly installment will be Rs 1,000. The scheme has been designed in such a way that the parents will be registered in the scheme on behalf of their wards.”This is because the Chit Fund Act does not allow students to be enrolled in such schemes. The parents will pay along with the savings of the students towards the scheme that will be collected by the Parent Teacher Association of the school, instead of our collection agents,” he said. The agents’ commission will instead be given to the PTA, that will be a good sum for the activities of the PTA, he added.”Also, the amount of whoever wins the monthly chit draw will be accepted as a deposit in the KSFE. This deposit will be given interest at the rate of 10.25%, an extra 0.25% compared to other deposits,” said Jose.THE TIMES OF INDIA

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