Comparative Advantage
Chit plans offer a unique comparative advantage over other savings and investment options due to their flexibility and dual-purpose nature as both a saving and borrowing tool. Participants contribute a fixed amount monthly, with the added benefit of accessing a lump sum through bidding or need-based allotment, making chit plans an excellent choice for meeting urgent financial requirements or funding business opportunities.
Chit Security Deposit
A Chit Security Deposit is an essential component of chit fund operations designed to ensure trust and compliance among participants. When joining a chit scheme, members are often required to pay a security deposit as a safeguard against defaulting on their commitments during the chit tenure. This deposit may be a percentage of the chit value or a fixed amount determined by the chit fund organizer. It acts as a collateral measure, ensuring that members fulfill their obligation to contribute the monthly installments.
