Indiranagar Chit Funds & Trading Company Pvt. Ltd.

Established in 1976, and entering into the 37th year the company has risen from ordinary to extra ordinary.

The sustenance has been record breaking with new team of leaders and proactive steps to meet the growing and challenging commitments.

To simply put it " We are one stop away for all financial solutions.

What is a Chit Fund?

A Chit fund is a kind of savings scheme practiced in India.

Chit funds also played an important role in the financial development of people of south Indian state of Kerala, by providing easier access to credit.

A collection of members called a chit group makes their contribution in the form of money to collect a chit amount and they bid in an auction to be awarded with the prized money which is equal to the chit amount the discount and the foreman's commission.

The chit is registered with the Deputy Registrar of Chits and a registered number is obtained. The Foreman promotes and conducts the Chits as per the regulations of the Chit Funds Act and Rules.

Members invest a fixed amount every month.

This collection is available for borrowing.

(Say in a group of 10, each member invest Rs. 10,000 every month i.e. Rs. 1,00,000 per member for 10 months)

How Chit Funds Work?

On a specific day of every month, members will gather to bid for

Rs. 1,00,000.

The organizer would start the bid with 5% and will seal the bidding at maximum of 30%.

If there are more than one bidder then “pick by lot” will be applied.

Other times the members can bid any amount above Rs. 5,000.

How Chit Funds Work?

Assume a bidder bids for Rs. 10,000 and someone wants to challenge his bid, should be above Rs. 10,100.

This way an “Auction” goes on.

Suppose the highest bid is for Rs. 20,000 then the deal is closed.

How Chit Funds Work?

Now the bidder would be awarded Rs. 80,000/-

(His bid amount would be deducted.)

How Chit Funds Work?

Rs. 20,000 deducted from the bidder would

be shared equally among the members.

How Chit Funds Work?

How Chit Funds Work?

So for the following month each person will pay only Rs. 8,000 (10,000-2,000).

This is the saving member gets every month.

Why Chit Funds?Chit schemes are organized on a personal basis and have

lesser stringency involved.

Decision making is comparatively faster.

The income from chit schemes compare favorably with the incomes from bank schemes in many cases.

Liquidity is compromised when you make a FD or join a recurring deposit scheme. You may get a loan approximately up to 75% only of your deposits.

In chits, the prize amount is always more than the amount of deposits made in the chit.

Rate of Returns will be calculated from the day of joining the chits and in case you borrow the chit, you still are benefited from the returns.

BenefitsRate of Interest is cheaper.

Less Documentation

Chits can be drawn at borrowers will.

Payments are assured within 30 days.

In Chits, the customer is looked upon as a valued subscriber and not a borrower.

Investment is safe without having to worry about market fluctuation and govt. policies. You can opt for as many chits as you want.

SCHEMES

Chit Value Duration / Months Total Members Monthly Subscription

Rs. 50 Lakhs 25 25 Rs. 2,00,000

Rs. 50 Lakhs 40 40 Rs. 1,25,000

Rs. 25 Lakhs 25 25 Rs. 1,00,000

Rs. 25 Lakhs 40 40 Rs. 62,500

Rs. 10 lakhs 25 25 Rs. 40,000

Rs. 10 Lakhs 40 40 Rs. 25,000

Rs. 5 Lakhs 25 25 Rs. 20,000

Rs. 5 Lakhs 40 40 Rs. 12,500

Rs. 3 Lakhs 30 30 Rs. 10,000

Rs. 2 Lakhs 40 40 Rs. 5,000

Rs. 1 Lakh 40 40 Rs. 2,500

Rs. 1 Lakh 25 25 Rs. 4,000

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