Frequently Asked Questions
WHY SHOULD ONE SUBSCRIBE TO A CHIT SCHEME ?
- There is always a need to secure oneself for Future requirements especially when there is no social security system in the country. One has the compulsion to think of contingencies of future such as for Health, Property, Marriage or for any other type such as Future business investments. etc. That is to SAVE safely with maximum returns that suit the timing of one’s needs The best part in chit fund is that unlike the other sources of investments such as BANKS or any other investment, in which one can get back what one has invested; in chit fund you can borrow from your future savings.
WHO CAN BECOME A MEMBER OF A CHIT ?
- Anyone who has a regular source of income and the capacity to repay can apply for membership.
WHY IS IT BETTER TO PROCURE FUNDS FROM CHITS WHEN COMPARED TO OTHER INTERMEDIARIES ?
- Service is more personalized, and formalities are simpler, when compared to Banks and other Institutions. Evaluation is intrinsic when compared to the elaborate paper work, as practiced in the formal sector. Last and not the least, the saving rate is higher and borrowing cost, much lower.
CAN ONE BECOME A SUBSCRIBER TO A CHIT JOINTLY WITH SOMEONE IN THE FAMILY ?
- Yes, one can have a chit in joint name with any family member or a friend. The prize amount in such case is given in the manner in the ratio of subscription to the subscribers individually or in any one name as may be given in writing to the Company.
HOW COULD A SUBSCRIBER PAY THE MONTHLY DUES ?
- The Subscribers can be paid by cash, cheque, NEFT, RTGS as per one‘s convenience. Many subscribers prefer to give Post Dated Cheques for the entire duration of the chit. It is the most convenient method for both the Subscriber and the Company. The Subscriber is informed about the amount vide Intimation through courier or by e-mail. In case of ‘Daily’ chits we provide doorstep collection.
WHAT IF SUBSCRIPTION IS DELAYED BEYOND THE AUCTION DATE ?
- Non-payment of the chit installment by the due date will result in late-fees. Repeated delays in subscriptions or other irregularities like dishonored Cheques may adversely affect your creditability with the company and even result in forfeiture of your dividend or cancellation of your chit, as per the terms of the chit agreement.
HOW COULD A SUBSCRIBER PARTICIPATE IN A CHIT AUCTION ?
- Subscribers who are regular in the payment of installment can participate in chit auction in person at the COMPANY premises as predetermined, at the Date, Time and Venue of auction. The subscriber can also authorize his representative by a written authority to participate in auction. The subscriber who offer the maximum bid is declared as the winner. Whenever there is a tie, at the maximum or any other level of the bid, the prized bidder is determined by a draw of lots.
HOW SOON CAN ONE GET THE CHIT AFTER THE AUCTION ?
- Prize amount is payable latest before the next auction date, provided some surety/security is given by the prize bidder for the proper repayment of the future installments. This is in the interest of the system as a whole.
WHAT IF SUBSCRIBER WANTS TO CANCEL THE CHIT ?
- Subscriber must know that only non-prized chits can be canceled. Prized chits can be pre-matured only on the condition that all pending and future installments in the chit are paid in advance. A non-prized subscriber can withdraw their subscription by a written request to the Company. The Company will, as per the bye-laws and chit-agreement, make the payment after the deductions, on actual subscribed amount.
WHAT IS TO BE DONE AT CHANGE OF ADDRESS ?
- Any change of address should immediately be conveyed to us. To avoid any communication error, it is essential to send your changed address in writing, giving your group and ticket number.
WHAT ARE THE RISK FACTORS IN JOINING A CHIT FUND, AS AT TIMES, THERE ARE ADVERSE PAPER REPORTS ON THEIR WORKING ?
- You may look for the credentials of the company with the office of the Registrar in the State. Registered chit companies with long standing records, that too with ratings, like Balussery, are absolutely safe.
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