It's Got an Undeserved Reputation
The mere mention of a chit fund can get worried wrinkles to appear on foreheads. Call it chit, chitty, kuri or committee, this was once a popular savings avenue, as much with housewives as with businessmen. Over a period of time, it has earned a bad name due to scores of scams and frauds in the name of chit funds. While fund companies and even government regulatory bodies say that chit funds are safe and a much-needed financial product to give people the option to save and borrow at the same time, the scams are giving the fund a reputation that is undeserved. This CV report is meant to give general consumers a better understanding of chit funds – what they mean, how they operate, what precautions one may take. The idea is also to peep into the workings of top chit-fund companies and compare them on certain essential parameters to find out which ones are better.
Team Consumer Voice contacted chit-fund companies across NCR culled from the list on Delhi Government’s website. A set of common questions – prepared after thorough research – was addressed to each one of them. The questions focused on the products/chit groups offered to members and the overall operational strategy of the companies.
The team also interviewed a few chit subscribers to understand their satisfaction levels as well as overall experience with regard to their membership in multiple chits/funds of chit-fund companies. To compare the services and rate them for their consumer-friendly approach, the team identified important variables, assigned appropriate weightage to each variable, and evaluated and rated each company on the basis of these variables.