Chit Fund Calculator

How a chit fund works, with an example

A chit has as many members as months. Every month each member pays the subscription (the chit value ÷ the members), and one member takes the chit at an auction by bidding a discount: the amount he gives up. The foreman takes his commission (at most 7% of the chit value) from the discount, and the rest is shared by all the members as a dividend, which comes off that month's subscription. A registered chit company charges 18% GST on its commission; it comes out of the discount too, so every member pays a share of it.

Chit fund calculation formula

Dividend = (discount − commission) ÷ members  ·  GST = 18% × commission ÷ members  ·  You pay = subscription − dividend + GST  ·  You get = chit value − your discount

Example: a ₹5,00,000 chit of 25 members is ₹20,000 a month. If month 2 goes at a 30% discount, each member's dividend is ₹5,000 and his share of the GST on the ₹25,000 commission is ₹180, so everyone pays ₹15,180 that month. The member who takes it then gets ₹3,50,000 and pays ₹4,44,320 in all: like a loan at about 30% a year. The last member gets ₹4,75,000 for ₹4,44,320: like a deposit at about 7.1% a year.

Chit fund calculator for ₹1 lakh, ₹5 lakh, ₹10 lakh and ₹25 lakh

A ₹1 lakh chit of 20 members is ₹5,000 a month. Taken in month 2 at a 30% bid you get ₹70,000, like a loan at about 41% a year; taken last you get ₹95,000, like a deposit at about 8.9%.

All with a 5% commission and GST on it, the first auction at 30% and later bids falling evenly to the commission, as the calculator assumes. Your chit's commission and bids will differ: enter them above.

Good to know

• Early in a chit the money is dear (often more than a personal loan); late, the return is about an RD's. Taken around the middle, a chit is saving and then borrowing, so no one rate describes it: compare what you pay with what you get.
• The foreman takes the first month's chit without a discount, and the last member takes it with only the commission off. The dividends you get depend on others' bids, so this calculator assumes they fall evenly through the chit.
• Join only a chit registered with the state's Registrar of Chits, and keep the agreement: an unregistered chit is illegal and has no protection if the organiser runs away.
• Taking the chit, you sign guarantees (sureties, salary or property papers) for the instalments still to come.

Questions

చిట్టీ లెక్కలు ఎలా వేస్తారు?

చిట్టీలో ఎంత మంది సభ్యులుంటే అన్ని నెలలు. ప్రతి నెలా చిట్టీ విలువను సభ్యుల సంఖ్యతో భాగిస్తే వచ్చేది చందా. పాటలో ఎక్కువ తగ్గింపు (డిస్కౌంట్) వదులుకున్నవారికి ఆ నెల చిట్టీ వస్తుంది. ఫోర్‌మన్ కమిషన్ (7% వరకు) పోగా మిగిలిన తగ్గింపును అందరికీ డివిడెండ్‌గా పంచుతారు; అది ఆ నెల చందాలో తగ్గుతుంది.

ఉదాహరణ: ₹1,00,000 చిట్టీ, 20 మంది సభ్యులు: నెలకు ₹5,000. రెండో నెలలో 30%కు పాడితే మీకు ₹70,000 వస్తుంది: ఏడాదికి సుమారు 41% వడ్డీకి అప్పు తీసుకున్నట్టే. చివరి నెలలో తీసుకుంటే ₹95,000: సుమారు 8.9% రాబడి. రిజిస్ట్రార్ ఆఫ్ చిట్స్ వద్ద నమోదైన చిట్టీలోనే చేరండి.