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CHIT PAYMENT,<br />
CHIT SUBSCRIPTION
<strong>Chit</strong> Manager<br />
The chit manager gets a high return<br />
on the chit business which is justified<br />
by the high risk of 5% of the chit<br />
value for every scheme. This provides<br />
a regular monthly income of around<br />
Rs.10000 on an average for every<br />
scheme that is in vogue.
Income flow<br />
This steady income flow is sufficient to cover<br />
the operating cost and other statutory costs<br />
of running the scheme. The interest lost on<br />
the deposit that needs to be made an initio,<br />
and the monthly contributions as part of<br />
every scheme that has to be borne by the<br />
manager, require such an income source to<br />
keep him/her afloat.
<strong>Chit</strong> Manager<br />
The chit manager auctions out the<br />
’pot’ every month on a particular<br />
date. The members who wish to<br />
participate in the auction assemble<br />
at a particular place (generally the<br />
chit manager’s office) and call out<br />
their bids.
<strong>Chit</strong> <strong>Fund</strong> Software
How popular are chit funds in India?<br />
Kerala State Financial Enterprises (KSFE), set up in<br />
1969 and wholly controlled by the state government.<br />
Out of its aggregate business turnover of Rs 18,000<br />
crore per year, around Rs 12,000 crore come<br />
from chittis (as they are known in Kerala) alone.With<br />
460 branches in Kerala and 16 lakh subscribers,<br />
KSFE is perhaps the only profit-making chit business in<br />
the public sector.
How does the organiser of the chit<br />
fund make money?<br />
An organiser of a chit fund makes money by<br />
charging fees of 5 percent of the total<br />
amount of the pot. That we have already<br />
seen. There is another less evident way in<br />
which he makes money. The highest bidder<br />
for the pot is not given the money<br />
immediately. "For instance, it is a common<br />
phenomenon for the loan to be disbursed a<br />
month after the auction date.
WEBSITE<br />
http://chitfundsoftware.in<br />
EMAIL<br />
info@websoftex.in
What kind of returns do chit funds give?<br />
People who enter a chit fund to borrow<br />
money end up bidding for the pot with<br />
very high discounts. This ensures that<br />
they end up paying an 'effective'<br />
interest. These individuals do not make<br />
any return from the chit fund.
Whatsapp–<br />
Mobile-<br />
Skype–<br />
PH-
ADDRESS<br />
# 240/A, 3rd Cross,<br />
Gokula 1st Stage, 1st<br />
Phase Mathikere,<br />
Bangalore - 560 054,<br />
Karnataka, India.
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