How do I get maximum benefit from chit fund?

In many developing countries, chit funds have become economically the wise option. It has become popular among the household and the small business field. Chit funds serve as the best outcome in multiple and social functions.

In recent days, the participation of chit members in chit funds has been increased. Here is the reason behind it.

• A mechanism with the faster acquisition of expensive goods

• A commitment system for enhanced saving and borrowing options

• A sort of insurance against participants’ risk

• A social engagement platform

In India, chits ought to become an interesting context. It helps in re-examining its economic rationale. Chit funds have become more reliable in comparison with formal finance. It is due to the factors including standardised product features, institutionalised offerings, and formal finance.

Chit funds provide many benefits to the members who have been indulged in it. Though there are many chit fund companies, people are aware of the right organisation to move upon. Many people move toward chit funds due to the reason of both saving and borrowing money at the same time. Being a foreman also adds up an advantage.

When you are investing money in chit fund organisation, then the organisation remains as the chit foreman. Hence, all the transactions and auctions are ought to be conducted through the organisation itself. It is also a time-saving thing as nowadays, the organisations are focused upon using useful chit fund software.

The work of the software is to keep ahead all the works done and make the cash flow normal. It reminds the auction data to the members and helps in keeping the working environment normal.

Is investing in multiple chits advisable?

As chit fund becomes easy and recommended a form of saving, people wish to indulge in multiple chits. Investing in multiple chits at the same time is somewhat daunting. Hence, research has been needed to identify it in detail.

In a recent report, one in four people wishes to have more than one chit at a time. Due to the unique features and benefits of the chit funds, the members of the chit funds are moving toward investing in multiple chits. These are the benefits gained by the chit fund member. 

For more Clarification visit: Chit Fund Software Live Demo or contact us at toll free: 1800-200-1766 / 7397723052.

What benefits does a member and manager get from a chit fund? Does a chit fund have advantages or disadvantages in comparison to a savings account in a bank?

In a chit fund, all the members are bound to contribute a fixed amount on a monthly basis. For example, if a chit group has 10 members, one among them stands as a member and a foreman too.

Foreman or chit manager is the one who manages several chit operations and thereby conducts auctions too. He is responsible for the amount paid by the other members. He needs to keep track of the auctions and the members’ who have won the particular auction. The benefit of chit manager is that in every auction, 5% of the winning amount will be given to him/her.

As we all aware of the fact that chit funds are bringing a major revolution in the saving and borrowing realm. Compared to the savings account, chit funds are way better to help people in hectic situations. Chit funds help an individual to save money and at the same time, he/she can borrow money which when needed at the auction time.

Which is better in chit funds? Saving or borrowing?

According to the report, around 58% of the households employ chit as it results in saving bulk money. Let us see it in detail.

Chit as a saving vehicle

Usually, chit fund participants are more likely to join chit funds in order to save money. As per research, only 6% of households wish to borrow money through chit funds.

Chit funds are the great savoir in the money-saving field. Many individuals are searching for a way to save money. In that case, chit funds bring bliss in the saving realm.

Another added advantage is that the chit members can withdraw their savings amount at any time by bidding in any auctions.

Chit as a borrowing vehicle

In chit funds, the amount can be borrowed at any auctions by bidding the amount in need. Through borrowing, the individuals experience repayment flexibility. Unlike many conventional bank loans, the amount borrowed from chit funds can be paid off like amortising loan.

For more details regarding Chit Software visit: Chit Fund Software Live Demo or contact us at toll free: 1800-200-1766 / 7397723052.

How does a Chit fund make money?

Chit fund sector has now become the most convenient form of saving and borrowing money without any interest. Many households are finding it easier to invest in chit funds. Rather than getting panic about chit funds, the number of members joining in a chit fund has been increased. It is mainly due to the benefits and the sum of money gained at the end of every auction.

Who hates to save bulk amount in the short term???

The chit fund members ought to get good fortune by saving money in the chit funds. Few think whether saving is a good option or borrowing. According to survey, saving seems to the bright option through chit funds.

The report says that around 58% of the households depend on chit funds as it helps greatly in saving money. Rather than borrowing, many individuals consider chit as a weapon to save money. But, it is up to the member. He/she can save or borrow as per his/her wish.

Chit funds make money, but how?

We all aware that chit fund helps us in making money. Few newbies do not have enough knowledge about the process involved in chit funds. Hence, here is the short description through which individuals make money through chit funds.

Consider A as a member of the chit fund. In his chit fund, there are around 10 members each contributing 1000 rupees for 10 months. So, A and other members in the chit funds contribute 1000 rupees monthly. Now, the loop divides into two. Every month after the amount contribution, an auction will take place. It will be conducted and managed by one of the members ( Foreman).

During the auction time, any members from the chit fund can ask for the necessary amount. If the bid goes more than one, then the member who bids the lowest amount gets the amount. From the bid amount, 5% will be given as the foreman charge and the rest of the amount will be given to the respective member.

The process is done.. Many traditional chit funds ought to follow the same method as discussed above. Try to get more information about the chit funds and get involved in it. According to the current scenario, investing in chit fund returns more profit than investing in gold or some other cases.

For more details regarding Chit Fund Software visit: Chit Fund Software Live Demo or contact us at 7397723052.

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Can anyone from India explain a chit scheme with a simple example?

Chit fund industry has been evolving in the recent years. Chit funds are considered as the best saving option to which households can opt upon.

So, how chit funds work?

Let us start from the base. According to the Chit Fund Act, 1982, a chit fund is a type of rotating savings and agreements among multiple members. The members can be either colleagues, friends, relatives, neighbours. The members of the chit funds contribute a certain sum of money for a short period of time.

Say, if 50 members are there in a chit group. Each wish to contribute 1000 in a monthly basis for 10 months. If so, they will get a sum of 10,000 at the end. Chit funds are also known as Chitty, Kuree, and chit.

The picture explains the flow of money at chit funds in detail.

Are chit funds safe? Of course, yes!! Here is the reason!!

Before that, there is a person called foreman in every chit fund group. Every chit group selects one member among them as the foreman. He is responsible for the amount and the monthly auctions. In return, every month he will get 5% of the money given at the end of auction.

Before commencing the chit group, the foreman has to register the company with the registrar of chits. It is mandatory for every chit fund group either local chit group among relatives or a registered chit fund organisation.

During registering, the owner of the chit has to pay 100% of the chit value to the registrar of the chits. It is the resemblance of giving security. Once the chit group closes, the deposited amount can be withdrawn once every subscriber is free of his/her dues.

If the chit is not registered, neither the owner pays the security amount nor he is responsible for the amount deposited by the subscribers.

In other words,

Chit fund follows an exact analogy regarding kitty party. In the kitty party, the party will be arranged every month under different subscribers’ place. Likewise, chit fund subscribers contribute certain amount equally in a monthly basis and one subscriber gets the collected money.

The only difference between chit fund and kitty party is that lucky draw takes place in kitty party whereas in chit funds, auction takes place. Nowadays, many chit fund organisations have been involved in using chit fund software.

Chit fund software, but why?

Because, the chit fund software has become a handy solution for the hurdles faced by chit fund organisations. All the chits and other related data has been handled by the chit fund software. Other than that, the chit fund software helps in bringing up many benefits to the user.

To know more about visit: Chit Fund Software Free Live Demo

What is the concept of a chit fund, and is it good to be part of it or not?

Chit fund is not a new term into the accounting realm. Instead, the chit funds are popular due to the attractive option that involves both saving option and borrowing one.

By pooling candidates on a monthly basis, the chit funds run in a routine manner. Many individuals feel it as the best saving option.

Due to the recent demonetisation phase, many people began focusing on the financial sectors. As a result, the number of chit funds has increased. Various traditional channels have become active in their own way.

According to the recent study named, Chit fund participation and sources of economic value, chit fund saving has become one among the top three saving options. The study examined the pattern of chit fund usage in Kerala.

Chit fund mainly has the benefits thereby increasing the rate of interest in banks. Other than chit funds, people are interested in investing money in gold and land. The study also stated that 18 percent of the respondents ensured collection agent in the periodical basis.

The reason behind the popularity!!

In the choice of remitting money, convenience and flexibility are the most important attributes of chit funds. Hence, the number of people moving toward the chit fund has been increasing.

The table below helps in giving a clear understanding of chit funds and the reason behind the popularity.

Chit funds are popular due to its saving methodology. Though chit fund enables an individual to save and borrow money, the members are not liable to any tax divisions. These are the reasons why chit funds are popular.

In the saving perspective, many chit fund subscribers wish to make a huge amount of money at the end of every scheme. Do you know why they are depending on chit funds rather than bank deposits? It is because a sum of money can be aimed through periodic subscriptions through a collection agent.

For more details visit: Chit Fund Software Live Demo or contact us at toll free: 1800-200-1766 / 7397723052.

Do people have to pay less and get more in chit funds?

Chit funds is a very interesting process that gives the elapse of both saving and borrowing methods. The members of the chit fund can engage in spending a monthly amount which they will get back at the maturity date. There are more than 10,000 registered chit funds. Recently, many chit funds have been growing in the well organised way.

Coming to the question,

Do chit fund members get more in return when they pay less? The answer is everyone in the chit pays equally. But, the trick is when a member takes chit early, he/she will end up paying more. At the same time, when the member waits till the end, he/she will pay less and get more.

This is the mechanism behind the chit funds. Use it wise and bring many beneficial outputs using the best saving scheme named chit funds.

For more information and discussion click here : Chit Fund Software Live Demo  or contact us at toll free: 1800–200–1766 / 7397723052.

How does chit fund software work?

Having a chit fund software is like reducing your chit works half way. Chit fund software, a web-based application or a desktop application has been used by many chit fund companies in order to reduce the burden.

What does chit fund software brings in?

Mazechit, a chit fund application has been easing the accounting works of many chit fund owners. What is more about it? This is the prime question that strikes the reader's mind when they come across a chit fund software like Mazechit.

In reality, the chit fund application gives various advantages to its users through mobile integration. When you have multiple branches, Mazechit eases you with its diverse location access. It automatically sends reports to the mails and other phases. It also helps in payroll calculation.

Meanwhile, here are the enlisted features that has been offered by the chit fund software, Mazechit.

• Easy Access
• Software Usage
• Highly Secured
• Regular alerts
• Mobile App
• Custom - built

Easy access

Mazechit, a user friendly chit fund software enables the user to access their account anytime, anywhere. It can be implemented into your laptop, desktop, and other gadgets. If a company has multiple branches, the owner finds it easy to handle single access to information through Mazechit. Managing the business remotely increases the flexibility of the work.

Software Usage

Using Mazechit, the owner can handle accounts and work on it both online and offline. While the owner is in offline, they can also download files without any interruption. Even when there is no internet access, the software helps in handling the operations.

Highly secured

The software secures the information of the subscribers with high security. It ensures the confidentiality within the company. With the help of encrypted passwords, the information of the members remain safe for years. The information uploaded in the software will not be disclosed to anyone and none gains access to it.

Regular alerts

The main purpose of the software is to remind the users regarding the payment updates. As and when the members pays his/her instalment, he/she will be informed through message along with the receipt. Instant SMS alerts and email campaign helps the members to experience a smooth communication without any hassle.

Mobile app

Mazechit’s mobile app comforts the user with complete and quick coordination. Using the app, the chit fund owner can track down the chit fund collection agents, their location, and helps in follow up of their chit accounts too. The app also helps in paperless transactions.

Custom-built

As per the needs of the client, the software functions with its default facilities. As per customer’s preference, the option of customising the app is possible. The software has increased versatility to add or remove extensions.

For more details visit: Chit Fund Software Live Demo or contact us at toll free: 1800-200-1766 / 7397723052.

Is a chit fund a good saving instrument to invest money?

If chosen well, chit fund is definitely a good saving method to invest money.

Chit funds, a saving avenue has become popular within the short duration. There are many reasons to consider chit fund as a scam.

But, at the whole is a misconception that made chit funds under scam lists. There are around 10.000 registered chit fund companies which brings delight to the people’s money. The members of the chit funds are going toward the right saving method.

Around 10,000 registered chit funds, the Kerala government has the largest existence since 1969. Many financial advisors say that chit funds are the good investments that promotes a set of strict rules to avoid any mishaps.

We are providing our chit fund software for many registered companies to ease up their work.

How to choose chit fund company well?

Small investors consider it an option to enforce them in the monthly investment discipline. In the case of unbanked rural investor, they consider it a crucial step. They wish to choose the best chit fund company with years of experience.

It is better to research more before you choose investing in chit funds. Few people confuse chit funds with the kitty party.

A chit fund is a traditional savings and borrowing mechanism. But, in kitty party, the members pool along with a specified amount monthly and one among them gets the entire amount. The process is repeated every month.

The difference between chit and kitty party is that the winning member is not chosen by the draw of lots instead through an auction.

So, the below image explains the beginner to know how much they gain through a chit fund scheme chosen at the experienced chit fund organisation.

After explaining what is chit fund and how to choose a good one, the next question in the people’s mind is whether to save or borrow.

As explained earlier, chit fund is both a saving and borrowing option. If you did not bid until the end of the scheme, it is like a recurring deposit. You will get back your money at the end. Though the sum is fixed, the returns may depend on the distributed surplus over the months.

For more details visit: Chit Fund Software Live Demo or contact us at toll free: 1800-200-1766 / 7397723052.