Frequently asked questions
What is a chit fund and how does it works?
A chit fund is a community savings scheme where a group of people contribute a fixed amount every month. The total pool is auctioned each month and one member receives the full amount. This continues until every member has received the fund once. It combines the benefits of saving and borrowing in one simple plan.
What are the benefits of joining a chit fund?
Chit funds offer a disciplined savings habit, access to a lump sum amount when you need it most, returns better than a regular savings account, no collateral required, and a trusted community financial model. Members who don’t bid in the auction also earn a dividend from the foreman’s commission at the end of the tenure.
Is a chit fund better then a bank fixed deposit?
Both serve different purposes. A chit fund gives you access to a large lump sum early in the tenure — which an FD does not. It also provides flexibility and community trust. An FD is better if you want guaranteed returns without any commitment to monthly contributions. Many people use both together for a balanced financial plan.
How do i join a chit group?
Simply visit our office or contact us via phone or WhatsApp. Our team will explain the available plans, help you choose the right group size and monthly amount, and complete the documentation. You will need a valid ID proof, address proof, and a passport-size photograph. The process takes less than 30 minutes.
What is the minimum amount to join?
We have plans starting from as low as ₹1,000 per month, making it accessible to everyone — homemakers, daily wage workers, salaried employees, and business owners alike. Higher plans go up to ₹50,000 per month. You can join multiple groups if you wish to save more.
Can I join a group that has already started?
Yes, in some cases you can join an ongoing group as a substitute member if another member exits. However, we recommend joining a new group from the beginning so you have equal opportunity in all auctions from month one. Contact our team to check current availability.
How does the auction process work?
Every month, members who need the fund place a bid by offering a discount on the total chit value. The member who bids the highest discount wins the auction and receives the remaining amount. The discount amount is distributed equally among all other members as a dividend. Members who have already won cannot bid again.
What if I don't want to bid in the auction?
You are never forced to bid. If no one bids, a lucky draw is held among members who haven’t yet received the fund. Non-bidding members actually benefit because they receive a share of the discount as dividend, which increases their final payout at the end of the tenure.
Are auctions conducted transparently?
Absolutely. All auctions are conducted openly — either in person or via our digital platform — with all members notified in advance. Every bid, every winner, and every disbursement is recorded and shared with all group members. We maintain complete transparency in every step of the process.
What are the accepted payment methods?
We accept monthly contributions via cash, cheque, bank transfer, UPI (GPay, PhonePe, Paytm), and NEFT/RTGS. Disbursements are made directly to your registered bank account. We recommend digital payments for faster processing and a clear transaction trail.
What happens if I miss a monthly payment?
Missing a payment can attract a small late fee as specified in your chit agreement. If you are going through a genuine financial difficulty, please contact our team immediately — we will try to find a solution. Consistent defaults may affect your eligibility to participate in auctions or may result in removal from the group.
How quickly do I receive my auction payout?
Once you win the auction and complete the necessary documentation, the payout is credited to your bank account within 1–3 working days. We have a strong track record of zero delayed disbursements. Our team will guide you through the documentation process immediately after you win.
Is our company legally registered?
Yes. We are fully registered under the Chit Funds Act, 1982 and regulated by the State Government Registrar of Chits. Our company is also registered with the Registrar of Companies (RoC). All our chit groups are approved and compliant with applicable regulations. You can verify our registration details at our office.
Is my money safe with a chit fund company?
Yes, when you join a government-registered chit fund company like ours. The Chit Funds Act mandates that we maintain a security deposit with the government equal to the chit amount. All transactions are audited annually. We advise members to always verify the registration of any chit fund company before joining.
Can I exit achit group before it ends?
Early exit is allowed under specific conditions as stated in the chit agreement. If you have not yet received the auction payout, you may exit by finding a substitute member or by forfeiting a small amount as per the agreement terms. Members who have already received the payout must continue their contributions until the group ends.