How Chit Funds Work

The Chit Fund Life Cycle - Explainer

Interactive Chit Explainer

Tap each step to understand the flow in simple language.

1
Monthly Group Savings

Members contribute a fixed amount every month.

2
Auction / Bid

Members bid discount % to receive the chit early.

3
Prize + Commission

Winner gets chit value minus discount; foreman commission applies.

4
Dividend Shared

Remaining discount is distributed to all members.

1) Monthly group and pot creation

A fixed number of members join a chit. Everyone pays the same monthly installment. The total pooled amount becomes the monthly chit value (pot).

  • Example: 20 members × ₹5,000 = ₹1,00,000 monthly chit value
  • Tenure usually equals the number of members
  • Creates a structured savings cycle

Easy Chit Calculator

Quick estimate to understand prize amount and dividend sharing.

₹ 0
Prize money estimate
Chit Value₹ 0
Auction Discount₹ 0
Foreman Commission₹ 0
Dividend / Member₹ 0
*Indicative calculator for easy understanding. Actual scheme rules may vary.
Savings Discipline

Fixed monthly installments help build regular saving habits with a clear timeline.

Early Access to Funds

Subscribers can bid and receive funds before maturity based on their need.

Benefit Sharing

Discount after commission is shared among all members as dividend.

Need help choosing the right chit plan?

Talk to our team and we’ll explain the process clearly.

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