FAQ

What is Chit Fund?

In a Chit Fund company, company creates a particular group of members i.e. chit group. This group members pooling out his small savings at regular intervals until the end of scheme tenure and collected saving amount is loaned out internally to a members of the group through bidding mechanism. Foreman appointed by the company is responsible for collection & Distribution of funds.

What are the benefits of a chit fund?

Chit fund is a unique financial concept, which has flexibility to borrow or save.
By paying one-month installment amount, a person can get to borrow from the chit value, by offering a discount not exceeding the maximum limit ascertained in the chit agreement.

Why invest in a Chit Fund?

Financial planning for any type of requirement can be met through chit funds is flexible and convenient. As we are aware of the amount which we are about to receive and repay as per the schedule time. Chits are basically a product of acute financial discipline, and are less costly than various other means of financing. Whole Amount of Chit is kept as a Fixed Deposit in A nationalized Bank as a rule of Chit fund Act to ensure the safety for the members.