Chit, also known as Chit Fund, Chitty, Kuri, etc, is a transaction under which a person enters into an agreement with a group of people, on the understanding that each one shall subscribe a certain sum of money by way of periodic instalments over a specific period.

The highlight of a chit is that each subscriber is entitled to the prize amount (which is the amount determined by the number of instalments multiplied by the monthly instalment, i.e., the maturity value). It will be decided every month, either by lot or by auction, tender or other methods specified in the chit agreement. Hence, you can claim the amount even before the maturity, while continuing to pay monthly instalments.

Salient Features:

1. Foreman Commission at only 5%;
2. Short-term chits with maximum duration up to 25 months;
3. Collection on - daily / weekly / monthly basis;
4. Auction takes place every month;
5. No lucky dip;
6. Any employed individuals or businessmen are eligible to subscribe.