Wednesday, 10 July 2019

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).

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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.

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

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