Maximize your savings potential and achieve your financial goals faster
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Overview of Shriram Chits
Shriram Chits offers a unique platform where individuals and businesses can both save and borrow money through various chit-fund schemes.
Chit Fund Schemes
Shriram Chit fund scheme is a popular investment choice, offers both credit and savings to a group of people who contribute a fixed amount of money each month, and one member receives the lump sum amount. This cycle repeats until all members have received their turn and is done through auctions. It operates on the principle of mutual trust and is often used as an alternative to traditional banking system in rural and urban communities. Chit fund auctions are a unique process within chit funds, a type of rotating savings and credit association popular in India. Here are three simplified lines explaining how they work:
Member Gathering and Contribution
All members of the chit fund meet (often monthly), and each contributes a predetermined amount of money into a collective pool.
Bidding Process
Members who need funds then participate in an auction, bidding on the lowest amount they are willing to take from the pool, less than or equal to the total collected.
Allocation and Distribution
The member who bids the lowest amount wins the auction. They receive the bid amount, and the remaining sum is distributed among other members as dividends or is used to reduce their future contributions
Benefits of Shriram Chits
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Easy Access
Shriram Chits has branches in many towns, providing easy access for both subscribers and the company, enhancing service quality. This widespread presence has made Shriram Chits a household name in many families.
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Diverse Financing Options
The service caters to a wide range of individuals, including small investors, businessmen, and small-scale industrialists, offering them a reliable source of finance.
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Saving and Borrowing Flexibility
Shriram Chits’ subscribers can save in small amounts and receive a lump sum during the chit period. Additionally, they have the option to borrow against their future savings in advance, catering to both saving and borrowing needs.
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Online Payment and Quick Payment Services
Shriram Chits offers an online payment facility thereby ensuring convenience and quicker payment process for its subscribers.
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Low Service Charges
The subscribers can enjoy lower service charges during bidding/auctions. The service charges for existing and new chit fund subscriptions are at 5% and 7% respectively.
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Attractive Interest Rates
Subscribers can benefit from savings with up to XY% interest and avail credit at interest rates up to Y% This feature allows subscribers to maximize their financial gains while using Shriram Chits.
FAQs
What is Shriram Chits?
Shriram Chits is a chit fund company in India that offers a platform for individuals and businesses to save and borrow money. Through its chit-fund scheme, it promotes disciplined saving and provides an opportunity to access funds during financial needs.
What is the value of Shriram Chits?
The value of Shriram Chits refers to the range of chit fund schemes it offers, with chit values ranging from ₹50,000 to ₹1 crore, which can be paid back in instalments over 40, 50, or 60 months, catering to a wide spectrum of investors.
Is it safe to invest in Shriram Chits?
Yes, investing in Shriram Chits is considered safe as it is a well-established and trusted chit fund company in India.
How do I join Shriram Chits?
To join Shriram Chits, visit the Shriram Finance Website, navigate to the Shriram Chits option, fill in the required details, and click 'continue.' A representative from Shriram Chits will contact you to assist you further with the process of joining.
Can I participate in multiple chit-fund groups simultaneously?
Yes, you can participate in multiple chit-fund groups simultaneously as long as you can manage the monthly contributions for each group.
What are the benefits of participating a chit fund?
Participating in a chit fund helps in disciplined monthly savings and provides an opportunity to borrow a lump sum amount during financial emergencies.
What is the purpose of joining a chit-fund?
The purpose of joining a chit fund is to encourage regular savings, have access to funds for meeting financial goals or emergencies, and to benefit from a collective financial pool managed by a trusted entity like Shriram Chits.
