FAQ
Frequently asked questions
Clear answers about chit funds, our schemes, and how to get started.
Compliance
Government Rules, Regulations & Chit Fund Compliance
A simple overview of how registered chit funds are governed in India.
Chit Fund has been a part of India's financial system for more than 100 years.
Over 10 million households have benefited by investing in registered chit fund companies.
Chit fund business is recognised globally, operating as ROSCA — Rotating Savings & Credit Association — across India and Western countries.
There are two types of chit funds: those run by the State Government and those run by Registered Private Chit Companies.
Chit funds are regulated by the State Government under directives of the RBI and governed by the Chit Funds Act, 1982.
Registered chit funds are considered safe because they operate under a complete legal framework.
The above information is for general educational understanding of registered chit funds. Customers should speak with the company advisor and review the registered chit agreement before joining any scheme.
Is a registered chit fund legal in India?+
Yes. Registered chit funds operate under a legal framework and are governed by the Chit Funds Act, 1982, with regulation through the respective State Government framework.
Are chit funds regulated?+
Yes. Registered chit fund companies operate under applicable government regulations, state-level oversight, and compliance processes.
What is ROSCA?+
ROSCA stands for Rotating Savings and Credit Association. Chit funds are a structured form of rotating savings and credit system followed in India and other parts of the world.
Are registered private chit companies different from unregistered schemes?+
Yes. Registered private chit companies follow legal, documentation, and compliance processes. Customers should always verify registration and scheme details before joining.
What should I check before joining a chit scheme?+
Check the company registration, scheme details, monthly instalment, tenure, auction process, documentation, charges, and terms before joining.
What is a chit fund?+
A chit fund is a savings and credit scheme where a group of members contribute a fixed amount monthly. One member receives the prize amount each month through auction.
How does a chit scheme work?+
Members pay the same monthly contribution. Each month, the prize is auctioned. The bidder accepting the highest discount wins; the discount (minus the foreman commission) is distributed as dividend to all members.
Who can join a chit scheme?+
Any individual with valid ID and address proof can typically join — including salaried professionals, business owners, traders, and homemakers.
How is the prize amount calculated?+
Prize Amount = Chit Value − Auction Discount. The actual amount depends on the auction outcome each month.
What is dividend in a chit?+
Dividend is the share of the auction discount (after deducting the foreman commission) distributed equally to all members.
What documents are required?+
Typically ID proof (Aadhaar / PAN), address proof, recent photograph, and income proof if applicable.
Can I choose a plan based on my monthly budget?+
Yes. Use our calculator to find plans that match your monthly capacity and goal, then enquire with an advisor.
How do I contact an advisor?+
You can call, WhatsApp, or submit the enquiry form. Our team will get in touch shortly.
Are calculator results final?+
No. They are indicative estimates. Final values depend on the registered chit agreement and actual auction outcomes.
Where is your office located?+
Our office is located at No. 5, East Masi Street, Madurai. All our operations are based in Madurai.
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