Small savers usually have a hard time disciplining themselves to invest a monthly amount, and those putting large amounts of money in banks are usually disappointed with the meagre interest they receive at the end. Chit funds are a great way to enforce a savings discipline, but most chit funds don’t guarantee interest at the end of the subscription period. Shanthala Chits caters to both groups; not only do we have chit funds for every monthly savings denomination, but we also guarantee our clients a fixed amount at the end (approximately 8%, significantly more than the 3-7% offered by most banks).
Our fixed returns policy means that you can comfortably invest your monthly amount knowing that your savings are effortlessly growing. If you’re unfamiliar with chit funds, you might still be hesitant about investing because of the misconception that chit funds are a largely unregulated industry. The regulatory mechanism such as the Chit Funds Act 1982 ensure that your investments are safe and protected, keep chit fund promoters accountable to subscribers, and help ensure the financial inclusion of unbanked investors.
Capital When You Need It Without The Fuss Of Paperwork
Chit funds at Shanthala Chits offer you higher returns than a recurring deposit, along with the flexibility to take a loan when you need it. This is possibly the most important aspect of a chit fund- the access to liquid capital in times of need. Small businesses who have trouble getting loans from banks count on chit funds when they need capital to grow their business, and large businesses and individuals stand to gain just as much.
Individuals usually have financial goals, such as purchasing a house, a car, or an expensive vacation, and chit funds are an essential tool to develop the discipline to make regular savings. Importantly when actually making these purchases, it is inevitable that you will need more capital than you initially planned for, and chit funds are the perfect contingency funds for such a time. Investors have stayed loyal to chit funds because in emergencies, such as illnesses and hospitalisations, paying their children’s fees, or planning significant life changes, the have been enormously benefitted by the access to immediate credit that consistently investing in chit funds provides.
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