Ad­van­tages

Consumer Voice - - Chit Fund -

• Unique con­cept with flex­i­bil­ity to save and bor­row

• In­ter­est rate (called div­i­dend) is de­ter­mined mu­tu­ally by the sub­scribers and varies from auc­tion to auc­tion

• The money bor­rowed is against your own fu­ture con­tri­bu­tions

• The amount is given on per­sonal sureties too

• Can be re­lied upon to meet per­sonal needs as a sub­scriber can draw upon his/her chit fund for any pur­pose, be it a busi­ness in­vest­ment, buy­ing a house, or a wed­ding in the fam­ily

• Min­i­mum pa­per­work needed com­pared to other in­vest­ment op­tions

• It is like a re­cur­ring de­posit (RD) wherein you en­joy ma­tu­rity amount mid­way (if you bid) and do not need a sep­a­rate loan ac­count on the de­posit

• Re­turns are higher than bank de­posits

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