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1. What is Chit Fund ?

A Chit Fund is a kind of savings scheme practiced in India. In a chit scheme, a specific number of individuals come together to pool a specific amount of money at periodic intervals. Usually the number of individuals and the number of periods will be the same. At the end of each period, there will be an auction of the money. Members of the chit will participate in this auction for the pooled money during that interval.

The money will be given to the highest bidder. The bid amount will be divided by number of members, and thus determining per head contribution during that period. Usually the discount will continue to decrease over periods.

The person getting money in the last period will receive the full scheme after Deducting the Service Tax.

2. How safe is my money with the organization?

Honesty and trust worthiness of the organization, determines saftey of one's money invested. Vouchsafe by other senior subscribers, consideration of reputation of the company over the years, size of the organization with larger subscriber base can easily convince about the saftey of your investment.

3. Why should I join Sree Gowri Ganeshaa Chits Pvt. Ltd. ?

Sree Gowri Ganeshaa Chits Private Limited, although is of a recent origin, it has earned the reputation with a total turnover of over 132 crores. The company has been in the lime light due to the efforts of the Sri Lokesh Reddy.M, with his unquestionalble honesty and integrity. Further all transactions are documented, proper receipts issued for the amounts paid and with investments of the subscriber are insured, the money is safe and secured in the hands of the company.

4. What are the benefit by becoming "an Sree Gowri Ganeshaa Chits member"?

Subscriber who bids for the prize money towards later part and at the end of the chit term stand to gain by way of reduced number of bidders in the fray, in effect this means lesser money to be lost by way of discount. This works out to be a higher return rate of 18% to 20% per annum, as compared to the money saved in any savings account.By bidding for prize money, even during the initial stages, while your paid up installment are as low as two or three, you will receive the entire prize money after discount at one stroke, while the liability paid will be in monthly installments. In addition, the discount lost, is compensated by dividend received every month. Borrowing from the chit amount (prize money) is simpler, and much faster and easier, compared to other banking and other financial institutions.

  • Prized chit amount will be disbursed quickly after the auction/draw.
  • All the chits will be strictly registered and a copy of registration will be issued to each chit member.
  • Both prized and non-prized subscribers will enjoy equal dividend.
  • At-your-door service for all chit related transactions.
  • Hassle-free documentation for the disbursement of prized chit amount.
  • Transparency of information to the concerned chits.
  • More safety for your money.
  • High returns on your investment.
  • Small installment and big investment.

5. How is the working of chit fund scheme ?

The modus operandi of the chit fund, in a nutshell, is as follows:-

The foreman of the fund collects a specific periodic subscription from each of certain number of subscriber member. The total of the periodic subscription, called the capital of the chit fund is given out periodically as the prize amount to any one of the member through a system of auction. There will be many periodical installments as per the number of subscribers. Thus each member gets an opportunity to receive the prize amount once during the tenure of the scheme. All members contribute towards the periodic subscription till the end of the duration of the chit scheme.

Let us illustrate byway of an example .A chit scheme with a duration of 40 months and face value of Rs.1,00,000/- will have monthly subscription of Rs.2500/-. There will be, conventionally, 40 members in the scheme. Each member will pool in his subscription of Rs.2500/- every month for 40 months and ends up paying Rs.100000/- in the month in which he requires the consolidated amount.

The dealings as per market practice, do not take place at face value. The subscriber who takes the fund in the beginning gets it at a discount. This discount is divided equally in favours of all the 40 members of the fund after deducting the service charges of the foreman. The capital funds received by subscribers in succeeding months show a rising graph and with each passing month the subscribers get a bigger prize amount. The discount/dividend each month is the profit for all the subscribers have taken their prize money at the end of 40 months.

The auction is conducted in which the members participate and the person who discounts the maximum is declared as the prized subscriber. If there are more than one participant for maximum discount the Successful Bidder will be determined by way of lottery. Where in, the tokens bearing the numbers allotted to the members is put into a box and one token is drawn by any of the member present in the auction and thus, the member whose number is mention on the drawn token will be declared as the Successful Bidder.

6. What is the procedure to join a chit group?

Subscribers should fill prescribed applications, with personal details, salary details, contact details, nominee details and other things. Format for the application are available at every Sree Gowri Ganeshaa Chits Private Limited Branch office.

7. How many chits can I take in a chit group?

A person cannot take more than 2 (Two) chits in a group that too he should have paying capacity for the same.

8. What is the security for my money?

A Registered Chit Fund Company makes a Security deposit equal to 100% of chit value in a Schedule Bank as FDR, which is pledged in favor of registrar of chits. Therefore, a member in a registered Chit Fund Company is very much secured than a member in a non-registered company.

9. Whether company will be a subscriber in all chit groups?

According to the Chit fund act, always the company will be the first ticket holder in all the groups

10. Who is a foreman?

Any person who is registered and licensed to legally conduct chits. Foreman is the one with permission to start a new group as per Chit act 1982.

11. What is a chit agreement?

Chit agreement is a Legal contract between foreman and subscribers. Agreement includes rules, regulations and other details.

12. Whether any document to be signed for joining a chit Group?

An agreement in the format as prescribed in the Chit Fund Act along with an application for membership has to be signed by every member while joining the group.

13. What is the eligibility criteria for receiving the dividend?

On payment of first two installments in full prior to the date of auction, all the members are eligible for dividends pertaining to future auctions.

14. What sort of security is obtained from the successful bidder ?

A member can give sureties depending on the future liability of the chit. Following are the sureties generally submitted by the members.

  1. Personal Surety: Any salaried person working in State/Central Govt./ Public Limited Companies/Banks and other Reputed Companies will be taken as surety.
  2. Pledge: Deposits with the company in chits or otherwise, net paid amount of which, after deducting foreman's commission should not be less than 1/3rd of the successful bidder's liability to the company.
  3. Bank Guarantee: Guarantee given by the Schedule Bank in a schedule format can be submitted as surety.
  4. Income Tax Assessor: Any person having I T Assessment for the past three years having business, profession etc will be taken as sureties.
  5. Property Pledge: Deposit of title deeds of urban property can be submitted as surety. Third party property can also be given as surety.

15. How do i know my monthly dues?

Every subscriber will get SMS by15th day of every month. Your SMS indicates the dues payable by you and other Details such as Bid Details, Last Date to pay, and Next Auction date. If you have Several chit memberships and you wish to have the dues and acknowledgments of all these chits reflected in just one statement, such a request may be entertained. Even if the intimation does not reach you for some reason, you are expected to clear your subscriptions by the due date.

16. Does the auction take place every month?

Yes, The auction Date and Time will be decided at the time Commencement of Group and will be Intimated through Statement and SMS. Once the Auction date is Fixed or Decided, Next Auctions will be Conducted at the Same time of Every Next Month. In Case if the Auction date falls on Sunday or Govt. Holiday Auction will be Conducted on Next Working Day at the Same Time and will be Intimated through SMS.

17. What if i want to cancel my chit?

You must remember that only Non-prized chits can be canceled. Prized chits can be terminated only in special circumstances and on the condition that all pending and future installments in the chit are paid.
As an Non-prized subscriber if you wish to withdraw your subscription, please notify us in writing. As per the Chit Fund Act and agreement for the chit, the actual subscription will be refunded to you after deducting 5% of the chit value. The refundable amount is made available at an early date, as per the terms of our agreement.

18. Do you deduct any TDS from earnings in chits?

None, under the present income-tax provisions.

19. What is the Auction procedure?

Chit Auctions usually take place in a specially designated 5 minute duration.
Auctions take place at regular specified intervals at a fixed date, time and venue.
The date and time of the Auction must be known to every subscriber to help him make the best use of the flexibility of the chits.
The bidding in the Auction has to be in particular range. There are specified limits on maximum and minimum bids that can be entertained.
Participation in the Auction can be by written advice if personal presence is difficult.

The maximum bid limit is 30% and Minimum of 5%. Out of which 5% of the chit value is the company's commission and the balance percentage is distributed as dividends equally among the members in the group.

20. What are chit schemes available with Sree Gowri Ganeshaa Chits Private Limited?

Sree Gowri Ganeshaa Chits Private Limited is having a vide range of chit groups available which suits all walks of people for Example: Individual, Employee, Professionals, Agriculturists, Land Lords, Proprietors, Partnership firms, companies, corporate offices, Organization etc., It has a vide range of Chit values starting from Rs.1,00,000/- to a maximum range of Rs.10000000/-.

21. What are the modes of payment?

  1. Member can make payments either by cash, Demand Draft or cheques. Third party cheques are not acceptable. Issued cheques have to be realized before the auction date if the member wants to participate in auction.
  2. Online Payment Facility : Will be Available Very Soon at our website "".

22. Rules of Auction?

  1. Last date of payment by cash / cheque before 15th of every month.
  2. Cheque not allowed on auction day, the cheque should be cleared before auction date.
  3. Telephonic offers will not be accepted.
  4. In case if subscriber is absent, then subscriber's authorization letter {bid offer form} is required.