MUSTAQIM & ROSHINI

CHIT
FUNDS
 What is a Chit fund? & How it works?

A chit fund is a type of rotating savings and

agreement among different persons i.e. friends,
relatives, neighbours and family members to
subscribe a certain sum of money for a specified
period of time. Chit funds are often microfinance
organizations.
There are over 10,000 registered chit funds in
India.
 Under the chit fund

HOW DO
agreement; a certain
amount is deposited on
regular basis by the
different persons; and

CHIT after the gap of a

specified period of time
the amount is returned to

FUNDS the subscribers with

interest. Chit fund helps in
collecting the small

WORK? savings of the individuals

which turns into a big
amount.
HOW SAFE IS IT
How safe is Chit Fund?

Once the chit group commences, the foreman

has to register the chit company with the
registrar of chits. The owner of the chit has to
pay 100% of the chit value as security with the
registrar of chits.

The deposited amount can only be withdrawn

after the said chit group closes and every
subscriber is paid what is due to him or her. This
regulation protects the interests of the
subscriber to a certain extent.
1. Special Purpose Chit Funds:-

The group will use the collected amount for a specific use.

2. Organised Chit Funds:-

The group’s person-in-charge chooses a paper slip from
the box in front of the members.

3. Online Chit Funds :-

Through online tools, investment is done

TYPES OF CHIT
FUNDS
 4. Registered Chit Funds:-

The Registrar of Firms, Societies and Chits offers

registration to these chit funds. The Reserve Bank
of India regulates such funds by enforcing the Chit
Fund Act, 1982 throughout India.

5. Unregistered Chit Funds:-

Colleagues, family or friends organise these funds,

which act as savings schemes. They are riskier as
compared to registered chit funds.

 FEATURES OF CHIT FUND 2020

CHIT FUNDS
1.Deposits from all the members lead to the
accumulation of a lump sum amount. Item 5 Item 1
20% 20%

2.They serve as a means of financial assistance

for lower-income households.

3.These funds offer you a lower interest rate

than moneylenders. Item 4 Item 2
20% 20%

4.Such funds work as micro-finance institutions.

Item 3
5.They are a combination of savings and credit 20%

schemes.
MARGADARSHI
CHIT FUNDS
MUSTAQIM KHAN

SHRIRAM
CHITS
ROSHINI
MARGADARSHI CHIT FUNDS

HOW IT WORKS
Monthly Chit Schemes: These schemes allow customers
to make monthly contributions towards the chit fund.
Each month, one member is selected through an auction
process to receive the chit fund amount, with the
process continuing until all members receive their
payout.
Special Chit Schemes: These schemes are designed for
customers with specific financial goals, such as
purchasing a house, a car, or starting a business. The
scheme's duration and payout amounts are customized
to meet the customer's specific needs.
Nominal Fees: The company charges a nominal fee for its services, making it an
affordable option for customers looking to invest in chit funds.
Transparency: The company is transparent in its dealings, providing customers with
all the necessary information about its chit fund schemes.
Accessibility: Margadarshi Chit Funds has a wide network of branches across India,
making it accessible to customers in various locations.
 SHRIRAM CHITS

Shriram Chits is the largest chit funds entity in India. The trusted
household Savings & Investments service provider, a pioneer in
Micro Finance in India. The inexorable growth registered by
Shriram Chits in recent years not only indicates the usefulness of
this ancient instrument, but it is also a reflection of the customers'
trust in the Shriram Group.
Shriram Chits started its operations in the year
1974 with a single branch and has in a short span
grown into a trusted household name for making
Chits a viable form of saving and borrowing to all
sections of the society. It offers excellent
customer service for a community of 22,00,000
Subscribers.
 DETAILS ABOUT SHRIRAM CHITS
The Annual Auction Turnover of our Chit
Companies is touching Rs.3,000 crores.

•Shriram Chits started operations in 1974 with a

single branch. Today, their Companies operate in
Andhra Pradesh, Karnataka, Maharashtra,
Puducherry (Pondicherry) and Tamil Nadu,
through 465 Branch offices, employing 6,000
people and 65,000 Agents
CHIT FUNDS
THANK YOU!