Chit Fund Money, Chitty Meaning

Chit fund, Chit Chat, Chit Meaning

  • It is a contract between the managers, because the Promoter is named, and also the subscribers, World Health Organization be a part of
    • For example, 20 members, 20 months, Rs.5000/- a month. Range (the quantity) of members and also the number of months square measure to be constant.
    • Eligibility for award is decided by auction. All told auctions commencing from the 2d installments, subscribers will bid up to a most of four-hundredth solely. If quite one subscriber offers identical discount, the prized subscribers are going to be determined by heap.
    • The Pooled funds monthly square measure offered to the subscriber’s at monthly auctions and also the subscriber World Health Organization BIDS for the very best discount is said the lottery winner and given the prize quantity on correct security.
    • A Prized subscriber additionally ought to still pay the subscriptions until the termination of the account.
    The amount bygone as discount, less manager’s commission is distributed among the subscribers as dividend.