Frequently Asked Questions

The amount of a said scheme is called the chit value.
The duration of the scheme is known as term period.
The people who are interested in investing in the scheme are called subscribers.
The amount to be saved every month by the subscriber is known as subscription.
The person or company operating the chit fund is known as the foreman.
Monthly Subscription= Chit Value/No. Of Members
5,000= Monthly Subscription
1,00,000=Chit Value
20=No. Of Members

Chit funds are not affected by market fluctuations
It inculcates the habit of compulsory and regular savings.
It earns dividends every month depends on auction. So the net rate of return proves to be attractive
It is much easier and faster to get a lump sum loan than a regular bank in case of an emergency.
From a low-income homemaker to a businessman, anybody can join a chit fund. <

Auction is a procedure for identification of the non-prized subscriber who wants to take a chit amount at the highest permissible discount. All non-prized subscribers who have paid their installments up to date are allowed to participate in the auction for bidding up to the highest auction discount.

Yes, one can have a chit in joint name with any family member or a friend with full understanding. The prize amount in such case is given in the manner in the ratio of subscription to the subscribers individually or in any one name as may be given in writing to the Company.

Non-payment by the auction date will result in late-fees. Repeated delays in subscriptions or other irregularities like dishonored Cheques may adversely affect your creditability with the company and even forfeiture of your dividend or cancellation of your chit, as per the terms of our agreement.

Subscriber must know that only non-prized chits can be canceled. Prized chits can be pre-matured only on the condition that all pending and future installments in the chit are paid in advance. An non-prized subscriber can withdraw its subscription by a written request to the Company. The Company will act as per the bye-laws and chit-agreement, make the payment after the deductions, on actual subscribed amount.

Generally, we take Post Dated Cheques from the subscriber for the entire duration of the chit . It Is the most convenient method for both the Subscriber and the Company. In such cases, the Subscriber is informed about the amount vide SMS or as desired by the Subscriber. In the other cases, we send our Officers to collect the amount at one's place.

Subscribers can participate in chit auction by coming to the COMPANY'S OFFICE as per the Chit Agreement which gives the Date, Time and Venue of auction of the Subscriber's chit or the subscriber can authorize any one by a written Authority to participate in auction in its place. The bidder who bids the maximum is announced as the prized bidder in that auction. If there are more than one bidder offering the maximum bid or else all the bidders are offering a similar bid, then the prized bidder is determined by a draw of lots. The subscriber is able to participate only if payments are up-to-date.

We invite inquiries and comments from any other person or our SUBSCRIBERS. If you have any questions or suggestions, please feel free to fill in our contact us form and mail us. Our representative will get back to you and resolve all your queries.