There are numerous financial instruments out there, vying for our attention – marketing their schemes, attractive rates of interest, repayment plans, investment returns and what not. Traditionally people looking for a loan or planning to make an investment would look no further than the nearest branch of a nationalised bank! The more adventurous kind would try their luck with equity markets, be it mutual funds or shares.
However, when people are asked about their experiences with banks or the share markets, they have a few common problems and hindrances that they report.
The impersonal nature of banking
Banks favour the salaried class and financially stable customer. When you have a stable known income source, you will get a loan easily. When your only priority is risk free returns, then such depositors are happy with bank FDs.
However, consider these classes of people who find banking prohibitively complex and inflexible.
You are a small entrepreneur with a creative new idea, looking for a financial backer to invest in your venture. Getting a bank loan is an uphill task, because banks don’t have sufficient wherewithal to evaluate the merits of business plans and offer loans according to their need. If you take a loan from unsecured sources, there is the risk of harassment and operating risk. If you opt for credit instruments such as personal loans, credit cards or bank overdrafts, you land up with a huge interest liability.
Now think of a senior citizen looking for personal care, advice and support for their financial needs. The nightmare of standing in a long queue in the bank branch is simply too much to handle for them. New age banks say the solution is to adapt to online banking using a PC or mobile app. But for a 70-80 year old person, understanding and using these gadgets is a daunting task which scares them.
There are several other such classes of customers who find huge entry barriers to banking such as the uneducated, Non-English speaking or rural folk. Banking as a financial instrument hasn’t benefited this class much in the past decades. The government is making constant attempts to include them into the banking ecosystem, but that’s a slow and difficult task.
The inherent risk in equity markets
Now let’s shift focus to the adventurous young and middle aged urban investor. This is the class of customers who are willing to experiment with the markets to trade in various instruments – such as equities, mutual funds, commodities, options, bullion and other forms of speculative trade.
However, there is a huge element of risk involved in this route. While the returns may be good when the economy is booming, the principal invested is not guaranteed at all. There have been instances when crores of public wealth has been eroded in a single day of bearish market trends.
Chit Funds – a secure saving and borrowing instrument with the personal touch
Contrast the above popular financial instruments with Chit Funds. Any registered chit fund is a State Government approved institution, thus guaranteeing the security of our investments.
Whether you are a homemaker contemplating running a business from home or an SME entrepreneur or senior citizen looking to park your funds, chit funds offer a simple, hassle free alternative.
Take Shanthala Chits for instance. We are a Government Of Karnataka approved registered Chit Fund operating in Bangalore for the past 25 years. Just walk into our branch at Ulsoor, and we’ll be there to welcome you and to understand your specific needs. Based on your individual capacity and financial plans, we would curate the right Chit scheme for you that suits you best.
Our Chit schemes range from a monthly contribution of Rs 6000 to Rs 1,00,000 to suit every budget. Our chit schemes are for a tenure of 25 Months.
Anywhere in the middle of your investment tenure, if you are in a financial emergency, you can withdraw your prize money with minimal documentation and continue to pay your monthly instalments. No heavy interest burden such as in credit instruments, when you seek a loan.
When the Covid pandemic was wreaking havoc over small businesses and companies were facing an unprecedented working capital crunch, our customers were able to tide over this crisis smoothly. Shanthala Chits ensured that our customers received their money immediately, no questions asked.
That was possible simply because at Shanthala Chits, we know every customer of ours by name, we understand their specific backgrounds in depth and we are constant partners in their journey.
We take special care of our senior citizen customers. We provide them with 1-1 personal customer care and endeavour to make their interactions with us smooth, swift and hassle free.
Who said financial dealings have to be strenuous and time consuming? With Shanthala Chits, you can conduct your business with ease and walk away with a secure wallet and a peaceful mind.
Interested? Give us a call and we’ll help you pick the right investment scheme.
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