Simple, Transparent Process

From joining to fund disbursal - explained step by step

How Chit Funds Work

Follow these simple steps to start your chit fund journey

1

Join Chit

Visit any of our branches or contact us online. Choose a chit plan that suits your needs. Complete documentation including identity proof, address proof, and photographs. Sign the chit agreement after understanding all terms.

  • Choose your chit amount
  • Submit required documents
  • Sign the agreement
2

Pay Installments

Start paying monthly or daily installments as per your chosen plan. Payments can be made through cash, cheque, or online transfer. Installments are due on the same date every month.

  • Monthly/daily payments
  • Multiple payment options
  • Timely payment ensures eligibility
3

Monthly Auction

Every month, an auction is conducted at your branch. Members who haven't won yet can participate. The member willing to accept the lowest amount (highest discount) wins the auction. The process is completely transparent and open.

  • Transparent bidding process
  • Open to all members
  • Fair winner selection
4

Get Funds

If you win the auction, you receive the chit amount (minus the discount you bid) within 2-3 working days. You can use this money for any purpose - business, education, medical expenses, or other needs.

  • Quick fund disbursal
  • No questions asked
  • Use for any purpose
5

Continue Payments

Even after winning the auction, you continue paying installments until the chit matures. This ensures fairness for all members. The discount you bid is your cost for getting funds early.

  • Continue till maturity
  • Maintain eligibility
  • Support other members
6

Final Settlement

At the end of the chit duration, all members receive their share. Winners get their final installment refunded (minus discount). Non-winners receive their total contribution plus dividend from discounts.

  • Fair distribution
  • Dividend for non-winners
  • Complete transparency

Chit Fund Flowchart

Visual representation of the complete process

Join

Pay Monthly

Monthly Auction

Winner Gets Funds

Final Settlement

Benefits for Everyone

How different members benefit from chit funds

For Subscribers

  • Forced savings habit
  • Opportunity to win early
  • Dividend at maturity
  • No need for collateral
  • Flexible payment options

For Winners

  • Immediate fund access
  • Lower cost than loans
  • No credit check required
  • Use for any purpose
  • Quick disbursal (2-3 days)

For Non-Winners

  • Receive dividend from discounts
  • Higher returns than savings
  • Safe investment option
  • Government regulated
  • Full amount at maturity

Required Documents

What you need to join a chit fund

Identity Proof

Any one of the following:

  • Aadhar Card
  • Voter ID
  • Passport
  • Driving License
  • PAN Card

Address Proof

Any one of the following:

  • Aadhar Card
  • Utility Bill (Electricity/Water)
  • Bank Statement
  • Rent Agreement
  • Property Documents

Photographs

Two recent passport-size photographs

Agreement

Chit fund agreement form signed by you and witnessed

Agreement Sample

Our chit fund agreement includes:

  • Chit amount and duration
  • Installment amount and due dates
  • Auction schedule and rules
  • Member rights and responsibilities
  • Terms and conditions
  • Dispute resolution process
Request Agreement Copy

Watch Our Guide

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Chit Fund Explained

Watch our comprehensive guide to understand how chit funds work

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Ready to Start Your Chit Fund Journey?

Join thousands of satisfied members who trust Thirumalai Chits for their financial planning.