All you need to know before investing in Chit Funds

You’ve evaluated several financial investment options and have zeroed-in on chit funds as an attractive choice? Congratulations on a decision well made! Now, we’ll help you make an informed choice about the right chit fund scheme to choose, for your particular needs.

Match your chit scheme with your financial goals

You may be a senior citizen looking to park your surplus funds in an easily accessible instrument. Or you might be a business owner looking at chit funds as a source of capital. You might be an IT professional who is looking at chit funds as a saving and borrowing source. 

In all of the above cases, the first thing is to work out is the investment tenure and investment amount. Now you can choose the corresponding chit scheme to suit your exact needs.

For business financing: You can pick one of our chit schemes with a low monthly instalment for working capital needs. And opt for a larger prize money scheme for raising capital for expansion plans. Our Chit schemes range from a monthly contribution of Rs 8000 to Rs 1,00,000 to suit every budget. Our chit schemes are for a tenure of 25 Months.

For personal financing: Chit funds offer a simple, hassle free alternative to other financial instruments which involve lot of paperwork and procedural complexities. Chit funds are steadily gaining acceptance, especially among the new age investors and self-run businesses, apart from the traditional investor base of homemakers and rural folk. Shanthala Chits is rapidly embracing technology to suit our investors convenience. For instance, now you can make your monthly installment payments online. You can get notified of your tenure closure, new chit schemes on our website.

Verify whether the chit fund is safe

A major black mark against chit funds is the frauds and scams that get regularly reported, denting their reliability. When gullible investors opt for fund companies that are not government registered, they are taking on a mighty risk. The simple way to overcome this risk is to choose only government registered chit funds. With registered chit fund companies, your money is as secure as in a bank.

With the newly enacted Chit Fund Amendment Act by the Government of India, a major positive image make-over is expected in the chit fund industry. The fraudulent, Ponzi companies would be weeded out. The established reliable ones will get much-deserved credibility and government recognition. This will go a long way in reassuring customers. It is predicted that chit funds are likely to hold about 15-20% of the savings in India in the next 10 years.

How to choose the right chit fund company?

The first criteria is to check whether they are registered with the respective State Government. It is recommended to pick a fund company operating in your own state, for ease of operation. Then look for the reputation of the fund company, how long have they been in operation, how big is their subscriber base, how many repeat customers do they have. These are all pointers towards the reliability of the chit company. Consult some existing subscribers and take their feedback before enrolling yourself.

In order to safeguard the interests of all stakeholders, chit fund companies thoroughly verify the credentials of an investor before taking them on board. That’s because only when every subscriber makes prompt monthly payments without defaulting, the chit fund company can ensure smooth rotation of the prize money throughout its tenure of 2-3 years.

So pick a chit fund company that works with a personalized approach, maintains 1-1 relationships with each of its subscribers. This factor also helps in times of emergencies.

Can Chit Funds work as emergency funds?

Any unforeseen expense which cannot be put off and which impacts our mental, physical and financial well-being can be broadly considered as an emergency. Such expenses occur completely out of the blue and often require immediate funds to tackle them. We wouldn’t have the time or ability to arrange for funds after the emergency occurs. So its important to set aside some contingency funds for such emergencies which are available for immediate use.

Chit Funds are a very bankable option for use as emergency funds. Make small monthly contributions to a chit scheme, for a fixed tenure of 2-3 years. Withdraw your money at the end of the tenure with good returns, and earn in the range of 7-10%. In case of urgent need for funds, you can withdraw the entire prize money anytime during the chit scheme tenure. No penalties, no debt. It’s your own money!

OK, where do I start?

That’s easy. For investing with Shanthala Chits, just call us @ 9845787997. Or write to us at https://shanthalachits.com/contactus.php. and we’ll be glad to get in touch with you and help out with your exact needs.

Shanthala Chits has been in the business of chit funds for over 2 decades now. We are a Government approved chit fund company with a 25 year successful track record and thousands of satisfied customers. Shanthala Chits is registered under the Chit Fund Act of 1982, Government of Karnataka. We are one of the most popular chit fund houses based out of Bengaluru, known for our customer satisfaction and secure investments.

Anuradha C

Anuradha is a freelance writer cum corporate trainer in the IT/telecom domain with over 18 years experience. She served in senior technical and management positions in Huawei and TCS for 10+ years. Then gave up the traditional corporate ladder to go solo - in order to escape horrendous city traffic and to be at her own boss!
Anuradha C

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