Chit Fund

It's Got an Un­de­served Rep­u­ta­tion

Consumer Voice - - Front Page - Subas Ti­wari and Gopal Ravi Ku­mar

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.

The Ap­proach

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.

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