- What are some useful words and their meanings of Chit Fund??
Chit Group: a discount cluster refers to a specific range of members agreeing to subscribe a specific quantity for a specific amount. for instance, 30 members, 40 months, Rs.500/- a month.
Chit Subscribers: those that invest in a very bill cluster.
Term amount: the length of the bill.
Monthly Subscription: the number to be saved/paid monthly by the Subscriber
Chit worth: quantity collected from members within the cluster.
Foreman: he’s accountable for aggregation the subscription quantity from the subscribers, recording details of members and conducting the auctions. For these duties, he’s paid a fee, of the number collected. The Foreman’s fee is reduced from the number paid to the subscriber UN agency wins the bid.
Chit agreement: it’s a contract or agreement between the foreman and also the individual subscribers to a discount cluster. Agreement includes rules, laws and different details coping with the procedure for the conduct of chits.