Property of the prized subscriber or a third party Guarantor situated within the state limit is accepted as security. Gram Panchayat/Agricultural properties and also property having B-Khatha will not be accepted.

The subscriber needs to obtain Surrender Value certificate of the Policy from LIC of India. The surrender value only will be considered by ‘Vaasuki Chits’ and not the sum assured. The surrender value of the policy must be sufficient enough to secure the future liability/installments to be paid.

Fixed Deposits of any Nationalized/Scheduled/banks approved by the company will be accepted as security. The face value 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 Lien in favour of ‘Vaasuki Chits’ 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/banks approved by the company in the format prescribed by the company equivalent to the future liability will be accepted as security. Such Bank Guarantees will have to be confirmed by the concerned Regional/Circle office. The expiry date of the bank guarantee shall be 3 months after the termination date of the Chit group.

The paid-up amount in the Non-prized pass books (Gross Installment amount remitted minus Foreman’s commission of 5% oh the chit amount) will be accepted as security. The paid-up amount should exceed future liability amount plus interest at 18% P.A. till the termination of the non-prized Chit offered as security. The non-prized passbook shall be in the name of the prized subscriber or any other person.

NSC, PLI, KVP shall be accepted as security subject to noting the pledge/lien in favour of MSIL Chits. Incase of PLI, only surrender value shall be considered as security value.