Chit Funds are quintessentially an Indian form of savings. In fact, we’re sure you’ve grown up watching your parents invest in Chits for funding expenses. It is a beautifully crafted community-centric rotary scheme of savings/borrowings. It is probably one of the most flexible forms of savings in the market and the beauty of it lies in how the concept has evolved in the course of time.
There have been a plethora of Chit Funds cropping up in different parts of India, both formal and informal. In fact, since they have existed in India for time immemorial, they are known or are rather popular in different parts of India by different names such as Chit Fund, Chitty, Beeshi, Committee, and Kitty.
What initially started as a local chit fund between trusted neighbours, where the women of the household would contribute their savings to a chit fund has now progressed. From chit funds being unregulated and unrecognized for the longest time to them being not only legal but also advanced, we surely have come a long way. And, we at myPaisaa are revolutionizing Chits by not only digitizing the process of chit but by introducing chit plans that even have 10 auctions every month!
In fact, Chit Funds are one of the better saving schemes than most as investing in a Digital Chit Fund like myPaisaa accrues 10% interest compared to FD’s/RD’s in banks which might give only about 4% to 6% interest. Moreover, if you’re looking to take a loan, it can be quite arduous to apply for it in a bank. Whereas, if you take the chit fund route, you are sure to save a lot as the interest rate is relatively low.
So let’s explore how investing in a Chit Fund is permissive, stress-free, yet absolutely reliable:
Yes, that’s right! Chit Funds are legal in India. Formalized Chit Fund Companies like myPaisaa comply with the Chit Fund Act. Yes, myPaisaa is recognized by the Government and regulated by the Telangana State Registrar of Chits. Hence, all our chit information can be verified on the T-Chits website. Moreover, myPaisaa is the first chit fund ever to onboard Razor Pay as our Payment Gateway Partner.
Unlike banks, where there is the hassle of providing collaterals/security for taking a loan, Chit Funds do not insist on that; yes, even formalized and regulated chit funds. On a 100% Digital Chit Fund App like myPaisaa, we ensure that a person’s identity is authenticated by taking their Aadhar & PAN Card details into account.
This is one of the most relieving aspects of investing in a chit fund. It surely does save you hours of pondering, questioning, stress & tension as the Chit Fund Market does not fluctuate. Yes, the chit fund market is essentially a savings pool that you can create for your future self. It does not involve capital from a corporation or a company. Hence, the value of your chit will never depreciate.
Getting a loan verified from a bank can take aeons considering the amount of paperwork that is required. Whereas, when it comes to a 100% Digital Chit Fund like myPaisaa, we have our fair share of paperwork too. But, it’s as basic and paperless as it’s online. Yes, on registering at myPaisaa, you are asked to submit 6-months bank statement and 3 months of salary slips. Apart from this, you are also required to attest a few papers but it is carried out digitally as we’ve partnered with e-Sign.
Then, get ready to invest in myPaisaa today and start your savings journey on a peaceful note. Literally!