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How the Chit Fund Process Works

Interactive walkthrough + simple calculator to visualize the flow.
Step 1
Form a group

A set number of members join a chit group and agree on a fixed monthly contribution.

Members contribute monthly
Step 2
Monthly pot is created

Each month, the combined contributions become the chit value (the “pot”).

Pot = EMI × Members
Step 3
Auction happens

Members bid by offering a discount. The highest discount wins, and the winning member receives the pot minus discount.

Highest discount wins
Step 4
Commission + dividends

A small foreman commission is deducted, and the remaining discount is shared among all members as a dividend.

Dividend shared to all
Step 5
Cycle continues

A different member wins each month until everyone receives the prize money once.

One winner every month
Try the example
Adjust values & see live changes
Discount range shown for visualization.
Monthly Pot (Chit Value)
₹96,000
Pot = EMI × Members
Members: 0 • Tenure: 0 months
Discount Amount
₹24,000
Based on discount %
Prize Money (Winner Gets)
₹72,000
Prize = Pot − Discount
Foreman Commission (Assumed 5%)
₹4,800
5% of Pot
Dividend per Member
₹1,600
(Discount − Commission) ÷ Members
In short
  • Chit funds combine saving + borrowing in one plan
  • Every member gets a chance to access a lump sum when needed
  • Members also benefit from dividends each month

Get in Touch

Office hours from 9am to 7pm

1. Call : +91 9994783999
2. Office : 04292-291999
3. WhatsApp: +91 9994012999
4. e-mail : paranthamanchitfunds@gmail.com