The other names for chit fund are chitty, kuree, etc. People who join the best chit fund in India agree to contribute a certain amount to a fund according to a predetermined number of individuals. Then, they draw the required amount of money at the right moment by claiming it themselves, by lot, or through some auction. After earning money, they must repay it over time in regular payments.
Read on to know about the best chit fund in India and how they work.
Read more: Recurring Deposit vs Chit Fund
How does Chit Fund in India work?
Let us understand the working of best chit funds in India through an example:
Under the best chit funds in India, each subscriber must contribute Rs. 1000, making a total of Rs. 15,000 monthly if there are fifteen participants, and the chit fund in India is for 15 months.
People who need money can bid on it if they require it in the first month. If the offer is agreed upon at Rs 12,000, the individual who succeeded in the bid will receive Rs 12,000, while the others will pay less since the chit fund in India amount has gone for less.
The person who chooses last would receive close to Rs 15,000, but he benefits because he has yet to make a contribution of Rs 1,000 for fifteen months, so he puts in less and receives more. There are various best chit funds in India available.
Best Chit Funds in India 2023
The table below depicts the best chit funds in India.
|Name of Chit Fund||Authority|
|Government of Kerala Linked Chitty||The Government of Kerala|
|Margadarsi Chit Funds||Ramoji Rao (India Private Limited)|
|Shriram Chits||Shriram Ownership Trust and Sanlam Group|
|Mysore Sales International||Government of Karnataka|
|Kapil Chit funds||Kapil Group|
|Amruthadhara Chits and Finance Private Limited||Amruthadhara Chits and Finance Private Limited|
|Gokulam Chits||A.M. Gopalan|
|Guru Nanak Chit Fund||Guru Property and Construction Pvt. Ltd.|
|Purasawalkam Santhatha Sanga Nidhi Limited||Gindalapuri Sundaresan Venkataraman
|Louis Chit Funds Private Limited||Ernakulam|
Below we have discussed the Best Chit Fund Schemes in India:
1. Government of Kerala Linked Chitty
Kerala State Financial Enterprises manages The Best Chit Fund in India, Chit funds, or chitty. It is reliable and secure because the Keralan government backs them. Therefore, the bidder of this Best Chit Fund in India with the most significant reduction in reward money receives the sum of the chitty or subscription. To access it, you must be a resident of Kerala.
2. Margadarsi Chit Funds
Ramoji Rao founded the Margadarshi chit fund in India Private Limited in October 1962. This best chit fund in India is a unique financial idea that allows you the freedom of saving or borrowing. An individual can access the best chit fund in India by paying a monthly installment sum. Margadarsi Chit Fund Private Limited branches are in Karnataka, Andhra Pradesh, and Tamil Nadu. One of the several programs Margadarsi Chit Fund Private offers is STE. If a consumer pays Rs. 200 per month for 25 months, the value of the best chit funds in India is Rs. 5000. The other program is STF, which requires customers to make monthly payments of Rs. 400 for 25 months, with a 10,000 chit value.
3. Shriram Chits
The fund is the largest chit fund in India and probably has a high-security level. About 6,000 people work for this company in Karnataka, Maharashtra, Andhra Pradesh, and Tamil Nadu. So if someone wants to save money for something, they can invest in the best chit funds in India. There are 22,00000 customers for the company. One must pay any taxes resulting from using chit funds.
4. Mysore Sales International
This best chit fund in India is a department of the state of Karnataka. The business offers plans for everyone, which is why it is the best chit fund in India. Because they start with small sums, these plans are very well-liked. The main feature of this best chit fund in India is that it is safe because the Karnataka government backs it. Therefore, they are highly secure, so there is no cause for concern. The best chit fund in India’s benefits includes providing cash and accessibility in need.
5. Kapil Chit funds
Kapil Chits is a private limited corporation founded on August 29, 2008. It is registered with the Registrar of Companies in Hyderabad and is a Non-Government Company. It has a share of approximately Rs. 5 lakhs. This Best Chit Fund in India ties to other financial institutions, and the Ministry of Corporate Affairs oversees it (MCA). All of the Kapil Chit funds’ directors belong to Hyderabad.
6. Amruthadhara Chits and Finance Private Limited
Amruthadhara Chits AND Finance Private Limited was founded on December 31, 1900, and is a non-governmental organization. Restricted by Shares is the name of a private, unlisted company. Best Chit Fund in India’s permitted capital is Rs 2.5 lakhs, while its paid-up capital is 18.4% or Rs 0.46 lakhs. Amruthadhara Chits AND Finance Private Limited has been actively engaging in the finance sector for the past 119 years, and as of right now, the company’s operations are liquid.
7. Gokulam Chits
The Gokulam Group of Companies launched Sree Gokulam Chit & Finance Co. Pvt. Ltd. in Mylapore as one of the best chit funds in India. It first started running on July 23, 1968. It has locations in Kerala, Tamil Nadu, New Delhi, Karnataka, Telangana, Andhra Pradesh, Maharashtra, Haryana, and Puducherry (Pondicherry).
8. Guru Nanak Chit Fund
On June 29, 1964, Guru Nanak Chit Fund Private Limited was established as a privately held, unlisted business. It has Rs. 0.2 lakh of capital. The Best Chit Fund in India’s paid-up capital is 7.5000005%, or about Rs. 0.02 lakh.
9. Purasawalkam Santhatha Sanga Nidhi Limited
A public limited business, it was established in 1879. It was registered with the Chennai Registrar of Companies. The paid-up capital of this best chit fund in India is around Rs. 73,50,000, and the share capital is close to Rs. 2,00,00,000. This is the reason that it is one of the Best Chit Funds in India.
10. Louis Chit Funds Private Limited
On January 1, 1901, Louis Chit Funds Private Limited was established and known as an “organization restricted by shares” and is a private, unlisted firm. This chit funds in India’s paid-up capital is 48 lakh rupees (96%), while its share capital is 50,000 rupees.
Benefits of Best Chit Funds in India
The best chit fund in India has various benefits, as listed below:
The best chit funds in India offer flexibility to investors for the contribution amount and the size and timing of the prize or the disbursal of the loan.
The best chit funds in India are affordable for almost everyone because of their lower contribution requirements. It is also best for low-income group investors.
It is convenient for the contributors of the best chit funds in India to manage accounts and perform activities because it runs completely digital.
The best chit fund in India suits people with bad credit history, needing more collateral, and not qualifying for other organizations’ loans.
5. Investment Opportunity
It is the best way to save and increase money over time because it offers an increasing value of funds with every single contribution.
What amount of Money does Chit Funds Firm Return?
The returns from the numerous best chit fund in India are difficult to estimate. It primarily relies on how quickly funds are being bid on. Additionally, a few commissions are paid to administer the best chit fund in India, which lowers overall returns. As a result, the best chit fund in India is losing some of its luster, which is a significant drawback. The security of some chit funds in India described in the article also raises some concerns.
Nevertheless, we have made an effort to remain focused on some of the nation’s largest and most well-known chit funds. It implies that the likelihood of another Sarada-style incident is relatively low. But historically, chit funds have shown to be dangerous. Therefore one should proceed with caution when investing in the best chit fund in India. These chit funds in India are available to investors, tiny business owners, and artists who want to make small monthly savings.
In rural areas, chit funds are a common form of investment. However, you should conduct extensive research before investing in a chit fund. In some circumstances, illegal chit business houses have been accused of stealing thousands of dollars from investors. Before investing in the best chit funds in India, think about all these hazards.
Best Chit Funds in India – FAQs
Is chit-fund a good option?
Yes, the chit fund in India is a good option for investment and saving money. However, some scammers have reduced the reputation of the chit fund. Many people investing in chit funds prefer government-run chit funds because they offer higher dividends.
Do chit funds offer reasonable returns?
The returns on chit funds in India vary from company to company based on the bidding rates. The involvement of the commission operates these funds and minimizes the returns. However, government-run and registered chit funds provide decent dividends.
What is a registered chit fund?
Chit funds can be registered from The Registrar of Firms, Societies, and Chits. RBI regulates the Chit funds under the Chit Fund Act 1982.
Are chit funds legal in India?
Yes, Chit funds are legal in India if the company is registered.
Is it safe if I put my trust in the Chit Funds scheme?
Ans. The Government of India regulates best chit funds in India companies that are registered in India. A registered best chit fund in India makes an FDR security deposit into a Scheduled Bank that is pledged in favor of the Registrar of Chits in the amount equal to 100% of the chit value.
This deposit must be made before starting a chit fund. Therefore, as a participant in the best chit funds in India registered, you may relax knowing that your money is safe.