Resources

Answers to common questions, the words used in every chit agreement, and tools to work out what a chit means for you.

Frequently asked

Chit value: The total a group pools each month: the monthly subscription times the number of members.
Subscriber: A member of the chit group who pays the monthly subscription.
Foreman: The chit company that runs the group, holds the security deposit and conducts the auctions.
Gross chit amount: The chit value: every member's subscription for one month, added together.
Discount (foregone amount): The part of the chit value the successful bidder agrees to give up to take the money now.
Foreman's commission: The fee the chit company takes from the discount for running the group, within the statutory cap.
Dividend (share of discount): The discount less the commission, split equally among all subscribers.
Prize amount (net chit amount): What the successful bidder receives: the chit value minus the discount.
Prized subscriber: A member who has already taken the chit; they keep paying installments until the chit ends.
FDR security deposit: We make a security deposit equal to 100% of the chit value in a Scheduled Bank as an FDR.