Dual Purpose: Savings and Borrowing

Savings:

Members contribute a fixed amount every month, fostering a disciplined savings habit.

Borrowing:

Members can bid for the chit amount when in need, making chit funds an excellent source of emergency funds or capital.

2. Accessibility

Chit funds are accessible to a wide range of people, including those who might not qualify for formal loans due to lack of credit history or collateral.

3. Low Interest Rates

The cost of borrowing through chit funds is often lower than traditional financial institutions, as the interest is shared among all members.

4. Flexibility

Members can decide when to bid for funds based on their financial needs.

The fund can be used for any purpose, such as education, medical emergencies, or business expansion.