Best Chit Funds In India
Best chit fund in India are thoroughly discussed here. Considering that registered best chit funds in india typically have short maturities and low subscription costs, investing in them is a wise financial move for investors. Individual needs can be accommodated in the investment’s design. Regular payments can be a solid source of money in an emergency and can help you establish financial discipline.
However, you must also be aware of the traps and regulatory gaps when investing. The legitimacy and creditworthiness of the organisation and the fund’s promoters should be a major factor when making decisions at the individual level. Read this to know about best chit funds in india.
Best Chit Funds In India- What is a Chit fund?
The rotating savings programme known as a “chit fund” has been a component of India’s financial system for more than a century. Chit, Chitty, and Kuree are other names for it. A chit fund is a great financial tool for both borrowing and saving money. It provides a fair return on investment as a savings vehicle, and as a borrowing strategy, it can be a dependable source of funds for both routine and unplanned expenses.
Best Chit Funds In India- Features
Here are the features of best chit funds in india-
- They combine credit and savings plans into one.
- As a microfinance organisation, they operate.
- They have a set duration and value.
- They give you the option to borrow money at a lower interest rate than moneylenders.
- They work best for supplying persons from lower-income households’ needs for money.
- All of the subscribers’ deposits are combined to form a single total.
Best Chit Funds In India- Benefits
Here are the benefits of best chit funds in india-
- Chit funds are a useful investing and saving tool since they let you borrow and save at the same time.
- Quick money availability:-A chit fund plan is simple to join, and you can borrow the lump sum (the pot) by only making the initial payment.
- Less or no paperwork-It’s an excellent tool for meeting peoples’ financial needs without requiring them to provide paperwork like IT returns or PAN cards, etc.
- No security:The chit fund is provided on personal sureties, unlike banks and other financial institutions which demand actual security.
- Having no questions-You are not required to state why you are using the borrowed funds (the pot).
Things to consider while investing in Best Chit Funds In India
Here are the things to be consider toinvest in best chit funds in india-
- Make sure the firm holding your chit fund is registered. Examine the company registrar’s certificate of incorporation.
- Find out who the chit fund company’s promoters are. Make sure they are all stable financially.
- Verify the registration certificate and registration number issued by the state’s chit fund registrar, where the chit fund business is located.
- Find out the foreman’s commission rate. Pick the chit fund provider with the lowest commission.
- Find out if there are any open court cases or complaints against the chit fund company by contacting the office of the registrar of chit funds.
Top Best 6 Chit Funds In India 2022
Look here for invest in best chit funds in india 2022-
1. Purasawalkam Santhatha Sanga Nidhi Limited
Public limited business Purasawakam Santhatha Sanga Nidhi Limited was founded in 1879 and is categorised as a Non-government Company. It is listed with the Chennai Registrar of Companies. The company’s paid-up capital is just under $7,350,000, and its authorised share capital is $20,000,000.
2. Gielle Investments ltd.
A public organisation with non-government corporation status is Gielle Investments Ltd. It is listed with the Kolkata Registrar of Companies. Its paid-up capital is 6 lakh and it has a 10 lakh authorised share capital.
3. Government of Kerala Linked Chitty
A chit fund, sometimes known as a chitty, was introduced by the Kerala State Financial Enterprises. Only because the Keralan government backs it is it one of the best and safest chit funds in all of India. The full sum of the chitty or subscription is awarded to the bidder who offers the greatest reward money decrease. Only residents of Kerala have access to this programme.
4. Amruthadhara Chits and Finance Private Limited
Amruthadhara Chits and Finance Private Limited is a non-governmental organisation that was founded on December 31, 1900. The name of this unlisted, private company is “organisation restricted by shares.” The permitted capital for this firm is 2.5 Lakh, while its paid-up capital is 18.4% (40,000
5. Shriram Chits
It is the largest chit fund in the nation and is presumably very secure. This company, which has operations in the states of Maharashtra, Tamil Nadu, Karnataka, and Andhra Pradesh, employs close to 6,000 people. If someone wants to save money for something, they can invest in its plans. There are 22,00000 customers for the company.
6. Gokulam Chits
The Gokulam Group of Companies’ main company is Sree Gokulam Chit & Finance Co. Pvt. Ltd. (SGCF). On July 23, 1968, in Mylapore, Chennai, this Chit and Finance company was founded. It now has offices throughout Tamil Nadu, Kerala, New Delhi, Andhra Pradesh, Maharashtra, Karnataka, Telangana, Puducherry (Pondicherry), and Haryana.
Best Chit Funds In India 2022- FAQs
- Is a chit fund dividend taxable?
Answer-It should be emphasised that the monthly dividend income received from chit funds is neither deductible from taxes nor subject to taxation.
- Does GST apply to chit money?
Answer-The government recently announced new GST rates, and the tax that chit fund services are subject to has been increased from 12% to 18%.
- Chitty is it profitable?
Answer-Chit, Chitty, and Kuree are other names for it. A chit fund is a great financial tool for both borrowing and saving money. It provides a fair return on investment as a savings vehicle, and as a borrowing strategy, it can be a dependable source of funds for both routine and unplanned expenses.
- Chits are they a wise investment?
Answer-Chit money isn’t always a poor investment. Because it has been abused in the past to con gullible investors, it has a poor image. It is safe to invest in government-run and registered chit funds. Recurring deposits, on the other hand, are a much safer investment.
- Who is the Chit Fund’s foreman?
Answer-“Foreman” is defined as the person who, under the terms of the chit agreement, is responsible for the conduct of the chit and includes any person performing the duties of the foreman under section 39 of the Act in clause (j) of section 2 of the Chit Funds Act, 1982.