A chit fund is a type of rotating savings and credit association system practiced in India. In some variations of chit funds, the savings are for a specific purpose
A chit fund is both a savings and credit product. It bears a pre-determined value and is of a fixed duration.Each scheme admits a specific number of members whose monthly contributions adds up to the total value of the chit fund at the end of the term.
Chit funds let you borrow a lump sum amount without providing any formal collateral, as opposed to banks or other financial institutions. The rate of interest is also much lower than what a bank would offer.
In India, chit fund companies come under the Chit Fund Act, 1982 and hence are legal, registered, and safe.
It is safe to invest in government run and registered chit funds. On the other hand, fixed deposit is a very safe investment.
It’s a great product to meet the financial needs of people without providing documents such as IT returns, PAN card etc
It’s easy to join a chit fund scheme, and you have the opportunity to borrow the lump sum (the pot) by just paying the first instalment.
You can draw upon your chit fund for any purpose you wish – marriages, shopping, travel, medical expenses, religious ceremonies, festivals, children’s education, etc.
The subscribers mutually determine the interest rate, and it varies from auction to auction. Additionally, the interest rate of borrowing from the chit fund is comparatively lower than other forms of borrowing.
Very Honest Person and engaging precautions for solve the problems of both Management
and Customers.
A Very Tough Laborer, Good Leader and also have Good Management and Administrative
Skills.
