Chit Funds

Chit funds

Every one in this world are looking to earn more money. Todays world is very much faster. They earn large amount. They spend with in a fraction of second. What about middle class people? In India you can see people who work hard day and night. Wanted to save money. They wont go for bank get money deposit. Most of them go for chit funds.

Yes this is very old practices of saving money. It helps people to get there money in one shot and pay in emi scheme. So basically it very good but we need to be very careful there are some people who cheat people. I dont have much information to tell you but wanted to write about chit funds.

Let me give you some points. How it works? Chit funds is like biding. You join / become member to known person like he will be agent. YOu choose a amount. It might be 25k to 10lakhs just for example that it. Once you joined you have options to bid in the first month and get the money once your bidding reached. If your biding is lost. Then you have to go head paying money to the agent untill you reach the months. It might be the 24,36,48 months schemes available. Here you get good money if your are the last person to get the money. The advantage here is your money is huge and emi schemes suits you.

What is the disadvantage? Oh, first and fore most thing is that you need to get trusted people or company to get this fund. If you wont get it , you may lose your money. Secondly the bid amount should not go more. While biding there are some people who bidding more and if you need money they wont leave you. If the bid amount increase you will lose the money too.

Ok i am going for chit funds but not for the people/ agent. Then you have choice organization. like margadharshi is the best one we have seen and sriram chits funds. These are good company. So this is better that personal loans. In personal loans you go for higher interest. Once not paid you will get more interest. This is disadvantage for you.