The philosophy that we as Think Chits believe in is that, everyone can be a part of chit groups. From salaried employees, Professionals, Proprietor , Partnership firms, companies, corporate offices, Organization and so forth. We welcome anyone. As of now we offer a wide range of Chit values starting from Rs.500,000/- to Rs.50,00,000/-

You can make payments through Demand Drafts, Cheques or Online transfers. We do not accept third party cheques.

The members who are in need of money will be participating in the auction for bidding. The purpose of bidding is to declare the successful bidder who gives the highest bid amount (Not exceeding maximum limit) within the specified auction time

The prized subscriber takes a loan advance from the chit fund company, with an understanding to repay the future instalment on time, so that the foreman is able to pay the prized money to other non-prized subscribers each month. In order to safe guard the interest of all non-prized subscribers each month the chit fund company insists upon the prized subscriber to provide guarantee for repayment of future instalments.

After a successful bidder is declared, they would have to provide satisfactory sureties/guarantors based on the future liability as specified in the byelaws. On receiving the surety, the liability of the member and guarantors are assessed. If the guarantors are acceptable a document is prepared which includes the guarantor bond and pro-note along with other requirements varying with the sureties given. Once this process is complete the payment is released to the bidder within 48 hours.

In order to safe guard the interest of all the non-prized subscribers, penalty is collected from all subscribers who make delayed payment of periodic instalments. In case a non-prized subscriber defaults for a continuous period of three months, such subscriber will be removed. The actual amount paid by him in the chit minus company commission will be repaid to such defaulting subscriber, after completion of the chit period. In case a prized subscriber defaults for a continuous period of three months, a penalty of 2% per month will be collected and dividends will also not be paid to such defaulting prized subscriber. Legal action will be initiated against the said defaulting prized subscriber and his guarantors in court of law, for recovery of all dues.

When a member withdraws, the foreman has to find an alternate member in his place. Until then the chit fund company has to arrange funds on behalf of such a subscriber, for payment to a prized subscriber each month. Hence withdrawal is permitted, but the actual amount paid by the subscriber in the chit minus company commission will be repaid to such a withdrawing subscriber at the end of the chit period.
Subscriber must know that only non-prized chits can be cancelled. Prized chits can be pre-matured only on the condition that all pending and future instalments in the chit are paid in advance. The company will, as per the bye-laws and chit-agreement, make the payment after the deductions, on actual subscribed amount.

Chit is a mutually beneficial scheme where in a group of people contribute monthly towards the chit value and one member from the group is given the prize amount and the dividends are shared with all the other members. For Example if we consider a chit value of Rs.100000/- with 20 members for a duration of 20 months, then in the group each member has to contribute Rs.5000/- where by (20*5000) Rs.100000/- is collected. The auction is conducted in which the members participate and the person who discounts the maximum is declared as the prized subscriber. If there are more than one participant for maximum discount the Successful Bidder will be determined by way of lottery. 45% is the maximum bid allowed, which means a person foregoes Rs.45000/- and the balance Rs.55000/- is paid to the prized subscribers. Out of 45% discount, 5% goes to the company towards company’s commission for conducting the chit and balance is accumulated until an amount of Rs.100000/- post which a double auction will be conducted. The dividend accrued for the 20 months are the returns on investment for the monthly deposit made to their accounts.

Chit fund is a unique financial concept, which has flexibility to borrow or save. By paying one-month instalment amount, a person can get to borrow from the chit value, by offering a discount not exceeding the maximum limit ascertained in the chit agreement.(i.e.45% on face value of chit amount)
In a chit value of Rs.100000/- for a period of 20 months, first the subscriber can get an amount of 55000/-by paying only Rs.5000/- and remaining instalments he pays over a period of 20 months. The rate of borrowing is much cheaper than several other financial schemes.
The non-prized subscriber who is a saving member up to the last instalments gets dividend which is comparatively higher than the interest that are accrued by way of Recurring Deposit Schemes.
The purpose of drawing the prized amount need not be disclosed. It can be used for any need by the member for Example: House construction, Marriage, Education, Expansion of business, buy a Computer or any other purpose at his discretion.
There will be a compulsory saving which will earn dividends every month. Even if you take at the last month, the total dividends earned will be more than the bank interest rate.

The dividends earned in a chit are not taxable. If you want to claim the bid as loss then these dividends has to be shown as revenue income in the assessment. Hence the entire dividend earned in a chit is not taxable if you don’t claim the bid amount as loss.