How We Work

How Chits Work

Chit value

There is a new chit group that is commencing. The value of the chit is 500,000. This amount is known as the Chit Value.

Chit period

For the purpose of this illustration, we will consider the duration of the chit to be 50 months. This is known as term period for the chit group.

Subscribers

Subscribers The Foreman or Chit Fund Company has to gather 50 people who are interested in investing in this chit group. These 50 persons are called Subscribers.

Foreman responsibility (Kapil Chits)

Once the chit group commences

  1. The foreman has to register the chit with the registrar of chits.
  2. The foreman has to pay 100% of the chit value as security.
  3. This amount can be withdrawn only after the said chit group closes and every subscriber is paid what is due to him or her.
  4. This regulation protects the interests of the subscriber to a certain extent. 

Monthly subscriptions

Once the chit group commences

  1. The foreman has to register the chit with the registrar of chits.
  2. The foreman has to pay 100% of the chit value as security.
  3. This amount can be withdrawn only after the said chit group closes and every subscriber is paid what is due to him or her.
  4. This regulation protects the interests of the subscriber to a certain extent. 

Chit Discounts

Once the chit group commences

  1. The foreman has to register the chit with the registrar of chits.
  2. The foreman has to pay 100% of the chit value as security.
  3. This amount can be withdrawn only after the said chit group closes and every subscriber is paid what is due to him or her.
  4. This regulation protects the interests of the subscriber to a certain extent. 

Chit Discount example

Once the chit group commences

  1. The foreman has to register the chit with the registrar of chits.
  2. The foreman has to pay 100% of the chit value as security.
  3. This amount can be withdrawn only after the said chit group closes and every subscriber is paid what is due to him or her.
  4. This regulation protects the interests of the subscriber to a certain extent. 

Conclusion

Once the chit group commences

  1. The foreman has to register the chit with the registrar of chits.
  2. The foreman has to pay 100% of the chit value as security.
  3. This amount can be withdrawn only after the said chit group closes and every subscriber is paid what is due to him or her.
  4. This regulation protects the interests of the subscriber to a certain extent. 
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