Answers to Questions on Your Mind.

Kapil Chits is a professionally managed company in the service of its subscribers for decades. It has been in this business since 1981. It is backed by a well diversified group – the Kapil Group, which has interests in Real Estate, Media, Information Technology, Construction, Agriculture, Horticulture, Dairy, Drone Manufacturing and Services, Solar Energy, Commercial Office Spaces, Property Management, Hospitality, Ayurvedic Hospital etc. The Group is also socially responsible. It supports a non-profit cancer hospital, orphanage for 300 children, and provides scholarships to deserving students from the underprivileged sections of society. We also facilitate collection of the monthly chit installments from your doorstep besides online collections.

By joining a chit fund, a person is encouraged to save a small part of his income to meet his financial goals. In case of contingency, borrowing from the chit fund is much easier, faster, and cheaper. Chit Funds are also a low-risk savings option and allow their members/subscribers to earn better returns through dividends as compared to traditional savings instruments.

Every month, subscribers participate in chit auction. During the auction, they bid for a discounted amount from the total chit-fund value. The subscriber who bids for the maximum permissible percentage of discount on the chit-fund value wins the discounted chit value as “prize money” and is called a “prized subscriber”.

By investing in chit funds, you can build great savings as compared to your savings in a bank. Chit Fund investment encourages people to set aside a small part of their monthly income for long-term wealth creation and allows them to fulfill their dreams and life goals with a significant finance pool, which would have been spent each month on small expenses.

Additionally, subscribers can also raise money for their short-term needs with flexible, interest-free borrowings by participating in monthly auctions and winning prize money.

A subscriber is also entitled to a rebate on prompt payments of monthly chit installments.

A subscriber becomes eligible to participate in periodic chit auctions from the second month of joining a chit group. Before bidding in chit auction, a subscriber must have paid all his monthly chit installments up to date.

The difference between the chit value and the prize money won by the successful bidder in a chit auction is known as an auction discount.

From the discount (difference between chit value and prize money), 5% or 7% of the chit/pot value is deducted as the foreman’s commission. The balance amount after this deduction of foreman’s commission is distributed equally among all subscribers as chit dividend.

When a subscriber withdraws from a chit group, the foreman must substitute him/her. Until then, the chit fund company must arrange funds on behalf of withdrawing/defaulting subscriber to facilitate smooth payments of prize money and dividends every month to other chit subscribers. Therefore, withdrawal is permitted subject to the condition that the total amount (excluding interest on late payment) contributed by such a withdrawing member in the chit fund pool minus the company commission will be repaid to him/her at the end of the chit fund period or after another substitute is found in place of the withdrawing member.

Online transfers, cheques, demand drafts, pay orders, and cash (less than Rs. 2 Lakh) are all accepted modes of payment.

Subscribers can participate in auctions in 3 ways:

i) Online Auctions.

ii) Submission of a Bid Offer Letter.

iii) Submission of a Bid Authorization Letter (this means authorizing a third person to participate in the bidding process on behalf of the subscriber. The third person needs to submit the said authorization letter to the chit fund office with his/her ID proof to participate in the auction).

Normally for all chits, a minimum of three sureties or guarantors other than family members are insisted upon. The basic salary or taxable income of all such sureties or guarantors should not be less than 20% of the chits’ future liability.