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- CHIT FUND EXCEL CALCULATOR HOW TO
- CHIT FUND EXCEL CALCULATOR INSTALL
- CHIT FUND EXCEL CALCULATOR FOR ANDROID
- CHIT FUND EXCEL CALCULATOR ANDROID
The profit the subscriber makes from the chit is the distributed dividend, which he receives immediately. The profit derived is distributed equally, and is called as the dividend. This way, bids are invited every month for 20 consecutive months, and the chit amount is given to the lowest bidder, till every subscriber gets the chit amount once.
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So, in the 2nd month, every subscriber of the chit has to pay only Rs.750. In the 2nd month, Rs.5000 deducted from Mr Nakul will be distributed among all the 20 chit members. After this, Mr Nakul is not allowed to bid again but has to continue to pay monthly subscriptions. This commission is deducted from the amount given to the bid winner. The foreman/agent/company which organises the chit also has to be paid a commission, which could be up to 5% of the bid amount.įoreman/Agent commission = 5%*20000 = Rs.1000 This Rs.5000 is considered as “profit” of the chit. he is willing to forego Rs.5000 so that he can get money immediately. Mr Nakul wants money immediately, and bids at Rs.15, 000 i.e. Any subscriber, who is in need of money, can bid for the chit amount, at a lower amount than it.Īssume. Once the first month’s payment is received, bids are invited from all subscribers. The agent is responsible for bringing together, people with similar saving capacity, or similar borrowing requirements.Īmount collected per month = 20*1000 = Rs.20, 000 – this is known as the Chit Amount. The subscribers of this chit, pay the monthly subscription amount to the chit fund company, also known as agent/foreman. The new chit is open for 20 people, with a maximum contribution of Rs.1000 per month for 20 months. Assume it starts a new chit, from April 2017. The ABC Chit Fund Company runs the chit fund business from past 10 years. Let us look into a case study to understand how the chit funds work. Also, individuals with low credit score, tend to utilise these schemes for borrowing.īut is it a good savings/investment scheme?Ĭhit funds come with a high degree of risk, to the possibility of the chit fund owner escaping with the collected money, to the subscribers refusing to pay after taking their chit amount, the chances of fraud are very high. Lot many unregistered chit funds operate throughout the country, run by a network of friends, relatives, etc.īeing a savings cum borrowing scheme, it attracts a lot of people who want immediate liquidity or want to raise an immediate capital/loan. Though Chit funds, also known as a kitty, chitty, etc., are recognised by the government under Chit Fund Act, 1982, there are very few chit funds which are registered.
CHIT FUND EXCEL CALCULATOR HOW TO
Learn how to mange your money & create wealth, Download your FREE eBook now The concept of chit funds is very native to our country. They are savings cum borrowing schemes, which brings both the savers and borrowers on the same platform, which is owned by the Chit Fund owner. Once the download completes, the installation will start and you'll get a notification after the installation is finished.Here are few points to ascertain whether Chit Funds are worth Investing or not:Ĭhit funds are very popular among small business people, homemakers, lower and middle-income class, alike. CHITS CALCULATOR will be downloaded onto your device, displaying a progress.
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A pop-up window with the permissions required by CHITS CALCULATOR will be shown.
CHIT FUND EXCEL CALCULATOR INSTALL
Tap on the Install button located below the search bar and to the right of the app icon.
CHIT FUND EXCEL CALCULATOR ANDROID
CHIT FUND EXCEL CALCULATOR FOR ANDROID
CHITS CALCULATOR is a free app for Android published in the Accounting & Finance list of apps, part of Business.