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.
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