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We provide a reliable chit fund management facility and it needs to be managed by group activities and customer database. It holds various features, such as it manages add, delete, edit of groups, manages customer information according to the groups in which these have subscribed. Provide secured online access to it members.

Members can see next payment information, amount to be paid along with Loan details etc. It is one of the simplest software dealing with chit fund amount transaction of financial institutes. As a whole this is efficient for all organization those organize chits. Our Chit Fund Software includes

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We studied exact and practical working of chit fund along with the common problems faced by chit fund companies, and on the basis of this analysis and research we have developed this software using Microsoft dot net technology and Microsoft SQL Server.

Websoftex chit fund software is developed by vast experienced people with full data security and features which speed up your work and reduce your operational time which indirectly helps you in concentrating on your marketing and customer management activities.

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There are various chit supports in India. In the past there have been cases of individuals contributing and losing cash, the same number of coordinators has fleeced financial specialists. In any case, many have profited from chit supports also. There are many rumored chit finance coordinators, particularly the greater organizations that bring some well being into play.

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Chitty Money and Financial Features

Chit Fund Software is a very unique financial tool helping the customer from many years. If customers registered in Central Act and Governed by the State rules Customer gets tax consuming returns Registered Small scale enterprisers, Savers, beginners will becomes potential borrowers in future, Customers can choose chit fund software’s according to their business plans and requirements. This will help Customers to get good returns and fast flawless accounting.

Best Chit Fund Demo In Tamil

Chit Funds different types of funds plan

A chit fund is a kind of investment funds conspire honed in India, other than different types of funds plan offered by different open and private part banks, post workplaces, protection companies and so on.

Chit Funds are indigenous money related establishments in India that oblige the monetary needs of the low-wage families, which have been barred from the formal budgetary framework.

“Chit”, in the legitimate domain, implies an exchange whether called chit, chit finance, chitty, kuri or by whatever other name by or under which a man goes into a concurrence with a predefined number of people that each one of them should subscribe a specific aggregate of cash (or a specific amount of grain rather on account of towns) by method for periodical portions over an unequivocal period and that each such supporter might, in his turn, as dictated by parcel or by closeout or by delicate or in such other way as might be indicated in the chit understanding, be qualified for the prize sum.

Chits VS Other Financial Products

Chits (vs) Fixed deposit

A Fixed deposit is accepted for a pre-determined time period. Interest paid by banks range between 7.5-9.5% and is dependent on government regulation. The interest earned from fixed deposits can either be taken out periodically (monthly/quarterly/half yearly/yearly) or an investor can earn cumulative interest which is paid at the end of the term period. Fixed deposits offered by corporate sector carry a higher rate of interest but are risky and an investor will have to take an informed decision.

A fixed deposit is illiquid. The principle amount cannot be used by the investor, if he has to incur any unforeseen expenditure. If the investor opts for a cumulative interest group, the entire amount is returned only on maturity of the fixed deposit.

A chit on the other hand can help an investor by paying him an interest rate between 12-16%. The interest is paid in the form of dividend. If an investor has lump sum amount, he can invest the same in a vacant chit. By investing in a vacant chit, the waiting period is shorter; the investor can participate in an auction and use those funds for any planned or unplanned expenditure or wait until the end of the chit and enjoy higher dividends.

Chits (vs) Recurring deposits

Recurring Deposit scheme is offered by almost all banks in one form or the other.  Recurring Deposit is very popular among the salaried class, especially who can afford to save only few hundred or say few thousand rupees per month.

This scheme is a boon for people who do not have a large amount of savings and thus cannot use the Fixed Deposit scheme of the banks.  Under this scheme, the customer deposits a minimum amount (normally fixed) every month and bank pays the interest at the pre-determined rates (which is usually lower than that for fixed deposits).  At the end of the period i.e. on maturity date, the customer is paid the maturity value i.e. principle deposited and the interest payable. The current rate offered by banks is around 8.5%. This is subject to government regulation.

The same money can be invested in a chits and the investor can earn 12-16%. He can also borrow against the chit which is not possible with a recurring deposit.

Chit (vs) Bank Loans

Tremendous growth in the banking sector has seen an explosion of personal loans given to young salaried employees in the information technology, BPO and other sectors. This segment has higher disposable income and is willing to spend on cars, motorbikes and the like. Banks/financial institutions charge an interest rate anywhere between 12-24% on personal loans.

There is also no guarantee that the loan application will be accepted. The Equated Monthly Installments (EMI’s) are higher due to higher interest costs. If an employee is smart, he can plan his purchase of a car using a chit. The interest cost, paperwork and sureties required are much lesser in comparison with a personal loan.

Chits (vs) Mutual Funds

Systematic Investment Plans or SIP’s as they are popularly known are marketed aggressively to the younger generation, high net worth individuals and the like. A SIP is a financial scheme where investments are made daily, monthly or quarterly. These investments are invested by the fund company in the stock markets. Every fund has a Net Asset Value (NAV). The fund issues shares.

The number of units allotted to the investor would depend on the amount he invests and the NAV of the fund at that particular point in time. So the number of units issued would vary depending on the NAV. It is important to note that the NAV is entirely dependent on the market conditions prevailing at that time. There are chances where the current value of investment is less than the actual cost of investment. There are entry and exit loads i.e. charges which have to be paid by the investor to join or exit the fund. To sum up investing in a mutual fund carries moderate to high risk depending on the market.

Investing in a chit is similar to a SIP, where the investor would invest money monthly into a chit fund group he chooses. The monthly installment would vary depending on the competition in the group. There is no entry or exit fee charged and the risk involved in investing here would be very low in comparison to a mutual fund.

Chits (vs) Credit Card

Credit card is a convenient way to spend money. It entices the customer as he does not have to shell out any money when he makes purchases at a retail store. It also induces him to spend more than he can actually afford with the BUY NOW – PAY LATER mantra. The bank at the end of the billing cycle, which is usually at the end of the month, allows its customer to pay a minimum balance instead of the full amount allowing its customer to carry the remaining balance to the next month.

The bank allots a higher credit amount without giving much thought to the paying capacity of the customer. The customer falls into this trap by buying more than he can afford, paying the minimum balance at the end of the month, transferring remaining balance to the next month. This becomes a vicious cycle. Little does the customer realize that he is charged exorbitantly almost up to 40% when the credit card balance is revolved in this manner. He gets caught in the credit card debt trap.

A smart investor would want to use the SAVE-BORROW-PAY mantra instead of BUY NOW – PAY LATER. He would save at a higher interest cost, borrow at a lower cost and rescue himself form unnecessarily exorbitant interest costs. This is possible by having financial discipline and by planning, investing and saving and borrowing using chits.

Chits (vs) Stock Markets

Investing in the stock market requires a lot of personal time and effort to understand the financials of the stock, to time the market and buy the stock. After purchasing the stock, the investor cannot be complacent. He must keep a track of the stock market and the company in which he has brought stock and keep a constant tab on whether he in must hold or sell the stock.

Even an investor who wants to invest for a five year time period must keep himself abreast with the happenings of the stock market. He must make financial calculations whether the returns gained from the stock market may be more than what he would have gained from a less risky financial instrument, like a chit.

Chit Better Safe than Sorry

 

  • In some cases the investor who wins the prized bid makes off with the money and does not contribute his pending share of installments.

 

  • Always go in for registered companies for chit funds and check their past track records in order to maintain the safety of your investment.

 

  • Always make sure that you have the capability to pay your monthly installments as any default could result in you making huge interest payments and severe penalties.

 

  • The group of investors should have the necessary funds to pay their installments so that the operations of the fund are not hindered. Members might be required to maintain a deposit with these funds.

 

  • There is a risk of the foreman running away with the funds. In order to prevent this from happening to you make sure that the fund is registered under Chit Fund Act 1982.

 

  • Always check the chit funds you invest in for tall claims such as enormously high rates of return and if there is a statement made that after you get the winning bid no further installments are needed you need to note that they are illegal according to the Chit Fund Act.

 

What are the sureties to be submitted?

A member can give sureties depending on the future liability of the chit.


Following are the sureties generally submitted by the members.

 

  1. Personal Surety: Any salaried person working in State/Central Govt./Public Limited Companies/Banks and other Reputed Companies will be taken as surety.

 

  1. Income Tax Assessor: Any person having I T Assessment for the past three years having business, profession etc will be taken as sureties.

 

  1. Property Pledge: Deposit of title deeds of urban property can be submitted as surety. Third party property can also be given as surety.

 

 

  1. FD Pledge: If a member is having any deposit with Margadarsi Financiers, he can pledge the deposit certificate as surety. Member can also make the deposit from the prize money, which will be accepted as surety.

 

  1. Bank Guarantee: Guarantee given by the Bank in a schedule format can be submitted as surety.

How good are the chit funds?

It totally depends on the agreement you’ve entered into with the foreman responsible for conducting the chit fund program.


There are varied types of agreements that foreman enters into with different sections. It generally is a continuing installments for certain period and then a lucky draw for the prize winner.


Investing in a chit fund should be done only if you are in need of funds (return on your investment) in near future that a bank cannot give in that period of time. Otherwise, it will be wise not to invest in a chit fund.

Why are chit funds popular?

Chit funds are good vehicles in bringing savers and borrowers in the same platform.  The dire need with which borrowers are there determine the rate of returns for savers. There are checks also that borrowers don’t go overboard in bidding higher rates.

There are further checks and balances like chit funds are regulated, reserve deposits are prescribed and so on.


Chit funds are also in a way unique to India. But if the administrators of the chit funds are unscrupulous or borrowers do not honor their commitments in time, there are bound to be problems.


People who have grown investing in chit funds (pure savers) would vouch safe for the excellent investment vehicle.


So chit funds are very popular,  but should choose long standing chit funds to invest.