Usually when we talk or hear about chit funds, the general opinion is that chit fund is a scam and illegal and this is all due to the fact that the chit-funds business has indeed created a lot of chaos and scams in recent time. But, as a matter of fact, chit funds are legal in India and can be a good saving option for many, especially the housewives. If chosen carefully, chit fund is actually a hassle free way to savings, borrowing and earning.
Under Indian Laws and Acts, Chit funds are legally allowed to get established and registered. The chit funds in India are registered under Chit Funds Act 1982. Only those chit funds which are not registered can be considered as fraud.
What is a chit fund?
A chit fund is a type of savings process practiced in India. A chit fund business manages, conducts, or supervises a chit scheme. So far, our country has almost 10,000 registered legal chit fund companies
How chit funds work?
If you want to save in chit funds, you pay an amount to the chit fund company at specific intervals, usually a month, and this is for a fixed period of time. This amount goes into a common fund. This amount of money can now be given to one person, and the person is selected in a lucky draw.
Big chit fund companies also follow an auction system for allotment:
In this system, the person who gets the money is chosen on the basis of the lowest bid (he concedes to accept the least amount among the bidders). The difference between that and the full amount that is due is shared among the other members. The winner can continue investing even after this.
Another way is to follow the reverse auctioning system in which the person who submits the highest bid is given the total collected money and his bid amount is shared among the remaining people in his chit fund.
Invest in KyePot
KyePot is India’s one of the most acclaimed financial CHIT FUND legalized service companies. You can join KyePot as a chit member and achieve your earning goals faster. It provides an easy and cheap source of borrowing and earning. The best part is that it offers complete transparency of your investments and you can track your progress and take charge of your financial goals.
This chit-fund system is formed by the use of a mobile app which offers a platform where individuals can form their own chit fund within their own trusted network (family, friends or colleagues) or outside of network. An easy way for women to join and earn money from home.
Why should women in India join KyePot?
KyePot chit funding is easy, safe and a good means of earning, saving and borrowing.
- Save a fixed amount every month and create a disciplined savings habit
- You can borrow 70-95% anytime from the total amount deposited in the chit group
- You can earn up to 25% of your monthly contribution as dividend
Women from any part of the country can join KyePot chit fund but a little knowledge of Chit Funds becomes helpful for them. Joining the chit fund will help them to connect with more women and making them financially empowered. A small investment can help our women grow financially while being at home
How do you join KyePot?
For more details, check out Hiring Females For Work From Home Opportunity