Frequently Asked Questions

A chit fund is a savings-cum-borrowing scheme where a fixed group of members contribute a fixed monthly installment for a fixed tenure. Each month, the pooled amount is auctioned among members, and the winning bidder receives the prize amount for that month.

The monthly installment is the chit value divided by the tenure in months. For example, a ₹10,00,000 chit over 50 months has a base monthly installment of ₹20,000, which may be adjusted downward by any dividend earned in a given month.

Each month, members who need funds can bid by offering to forgo a portion of the chit value (the discount). The member willing to forgo the largest amount typically wins the auction and receives the prize amount, subject to providing the required security.

The discount amount from the winning bid, after deducting the foreman's commission, is distributed as a dividend among the remaining (non-prized) members, effectively reducing their installment for that month.

No. Once a member wins an auction, they are generally not eligible to bid again in the same chit group, though they must continue paying their monthly installment until the chit closes.

Successful bidders are typically required to provide security — such as a guarantor, collateral, or other documentation as specified by the scheme — before the prize amount is disbursed.

Missing installments may attract a penalty as per the scheme's terms and could affect your eligibility to participate in future auctions. We recommend using digital payment reminders to stay on track.

Yes. Chit funds in India are regulated under the Chit Funds Act, 1982, and registered chit fund companies operate under the oversight of the respective state's Registrar of Chits.

You can browse available plans on our Chit Plans page and click 'Join This Chit' to get started, or contact us directly for guidance on choosing a plan.

Yes, many of our subscribers join multiple chit plans simultaneously to diversify their savings and increase their flexibility to access funds when needed.