Chit Fund Saving Scheme

A chit fund is a type of saving scheme in India. Chit fund means an institution which accepts savings at interest and offer money for house and other needs. Chit fund companies that organize and supervise such schemes are regulated by the chit fund act of that region.  The chit money collected every month is open for bidding and a member placing the lowest bid gets the money.

Chit fund software is designed specifically to meet the unique needs of chit fund companies by providing an integrated accounting. Designed for chit fund companies. Play important role in today’s digital marketing. Time saving concept


  • A unique financial concept
  • flexible to savings
  • The rate of take is cheaper than other financial schemes
  • No formalities needed to join chit fund companies
  • Confidential returns
  • Also available for small savings
  • Doorstep facilities available

What is Chit Fund Auction ?

Chit Fund News, What is Chit Fund, Name Of Chit

Who could be a prized subscriber?

A subscriber has upraised his account or to whom the account quantity is paid is named a prized subscriber.

Who could be a non-prized subscriber?

A subscriber has not upraised his account or to whom the account quantity has not been paid nonetheless is named a non-prized subscriber.

What is an auction?

Auction may be a procedure for identification of the non-prized subscriber Chit agency needs to require a coupon quantity at the very best permissible discount. All non-prized subscribers Chit agency have paid their installments up thus far square measure allowed to participate within the auction for bidding up to the very best auction discount, at intervals a amount of 5 minutes allowed for every auction.

What is auction discount?

The distinction between invoice price and also the quantity at that a flourishing bidder takes a coupon during a lottery auction is thought as auction discount.

What is invoice dividend?

Auction discount minus company commission (5% of invoice value) is that the total cluster dividend. Total cluster dividend is distributed equally among all the subscribers. This dividend thus distributed is subtracted from subsequent installment collectible by the subscriber.

How to Start a Chit Fund Company:

Chit fund rules, Chit Fund Act, Chit Fund Companies

Procedure of Chit Fund Registration:

Chit fund corporations in operation in urban center as a follow, initial get a certificate of incorporation from the Registrar of corporations. The workplace of the Registrar of corporations (Delhi & Haryana) is at IFCI Tower, statesman Place, New Delhi.

(A) Necessities for registration of recent Co. with Registrar of tab Fund, New Delhi.

After obtaining this certificate, you’ll be able to apply for registration of the corporate with tab Fund Department., Govt. of N.C.T. of Delhi, 13th floor, Vyapaar Bhawan, I.P. Estate, capital of India a hundred and ten 002 (Tel. No. 331 8992) along with under mentioned documents:

  1. A) Note and Articles of Association.
  2. b) Incorporation Certificate.
  3. c) Type No. a pair of relating to shares allotment.
  4. d) Type No.18 relating to registered workplace.
  5. e) Type No. 32 relating to appointment of administrators.
  6. f) R.O.C. Receipt for filing of type No. 2, 18, 32
  7. g) Bank certificate for deposit of Rs. 1, 00,000/- as paid capital.
  8. h) Resolution for appointment of foreman of the corporate.
  9. I) Affidavits of the administrators regarding:-
  10. Age, healthiness and sound mind.
  11. Insolvency.,
  12. Non-conviction
  13. Membership/Directorship in alternative tab fund company.
  14. j) Proof of possession of the workplace premises.
  15. k) No objection certificate from the owner.
  16. l) Rent Receipt of premises.
  17. m) Lay out set up of premises.
  18. n) Photo-copies of the Election Card/Passport etc. of the administrators.
  19. o) Images of all the administrators, punctually documented by the CA.
  20. p) Net-worth certificate issued by CA of the corporate in respect of all the administrators of the tab fund company along with supporting documents. .
  21. q) Balance sheet(s) of the company/ partnership/proprietorship.
  22. r) Bye-laws in duplicate.

(B) Scrutiny of the registered workplace

In spite of everything the prescribed documentary necessities square measure consummated, spot scrutiny of the planned registered workplace of the corporate are going to be administrated by the tab Fund Department through Inspector of Chits. For this purpose, the registered workplace ought to be:-

  1. i) Having at least one hundred fifty sq. feet of workplace space.
  2. ii) Well volume to conduct tab fund business.

iii) Having associate degree Auction Hall.

(C) Framing of Bye-Laws:

The Bye-Laws submitted for registration shall contain the subsequent particulars:

  1. i) The total name of foreman conducting tab business.
  2. ii) The entire address of the foreman, registered address, within the case of a corporation being a foreman.

iii) The name beneath that tab business is completed or is planned to be done.

  1. iv) The total details of the operating of the tab.
  2. v) The realm of operation of the tab.
  3. vi) The circumstances beneath those withdrawals of subscriber shall be permissible.

vii) The procedure to be followed for returning the cash of the subscribers just in case withdrawal, qualification or death of the subscriber.

viii) The condition beneath that the transfer of a discount or the interest of a subscriber shall be permissible.

  1. ix) The total name and designation of the officer entitled to sign documents on behalf of the foreman.
  2. x) The speed of commission to that the foreman is entitled.
  3. xi) The language within which the accounts shall be unbroken.

xii) The mode of custody and investment of cash.

xiii) The settlement of disputes touching or regarding the tab.

After the Registrar, tab Funds urban center is glad that everyone the wants square measure fulfilled; a certificate for registration are going to be issued to the corporate. The Certificate of registration or the documented copy there from shall be displayed conspicuously at each place of tab business.

Chits Fund Hindi Demo, Chitty Details, Chit Fund Demo In Hindi

Chit Software is a cutting edge Chit Fund Management Software, extraordinarily intended for Chit Fund Companies by the specialists with over 10 years of Chit Funds understanding. Chit fund software is a completely stacked application which incorporates all your Chit Fund Activities.

Chit Fund Telugu Demo, Chit Fund Companies, Chitty Software, Chit-Fund Telugu

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.

Organised chit funds

There are many organised companies incorporated to do this as a business and these are governed by state or central laws. There is a central Chit Funds Act of 1982, apart from a number of state chit fund Acts.
There is an office of “registrar of chit funds” in every state that monitors operations which are quite stringent. Utilisation and appropriation of subscribers money is strictly prohibited.
While there are many companies, too, that have defrauded people, Parekh says that there are genuine companies as well that cater to the cash requirements of members locally. The first step of regulation, therefore, comes at the state level; hence it’s the state government which is responsible for any fraudulent activities by chit fund companies.
The issue arises because there is no entry barrier to start operations.
Says Parekh, “Setting up a scheme is an overnight exercise and it is difficult to have these regulated by a central regulator, hence states have to be involved in the implementation and monitoring of any regulation around these schemes.”

History of chit funds

Chit Funds are indigenous financial institutions unique to South India and predating commercial banks. They have stood the test of time, as evidenced by the growth in the number of chit fund companies in the South. However, the importance of any financial institution cannot be judged by its numerical strength alone, but by its performance.


Tracing back the history of the origin of chit funds reveals that they evolved at a time when banking facilities had not developed, thus filling an important credit gap in the economy. But with the growth of banks, chit funds were doomed to closure.


However, on the contrary, vast expansions in the chit fund business were witnessed over the years, neck to neck with that of the banking system. Proof enough that chit funds continue to fill the credit gap in the developing economy of our country. Today chit fund companies are recognized as important credit and investment agencies.