What Is A Chit Fund And How It Works

in #umachitfund3 years ago

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Uma Chit funds is a Non-Banking Financial Institution originated in India which comes under the RBI Act 1934. These companies are governed by the Chit Fund Act 1982.

The word "chit" is derived from the Hindi word meaning "to promise". In other words, a chit fund is also known as "mutual aid". The origin of chit funds dates back to ancient India and it has been used since then as an economical instrument to raise loans. In earlier times, the members of a village would save money collectively in the form of a chit fund to help themselves when in need.

Chit funds are a traditional means of savings and borrowing in which members or subscribers agree to contribute a fixed amount of money for a fixed duration of time. The total amount collected (by foreman) is then auctioned and given out as prize money to the member or subscriber in need. So, this allows the members to save a part of their earnings for the times when needed

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Uma Chit Funds is one of the best chit fund company in India and is also a Non-Banking Financial Company (NBFC), which means that it is not a bank but it can deal with deposits and other financial services. The company was established in the year 2000 and has become a significant force in the Indian chit funds market, collecting more than 200 crore rupees.*

The key to the success of Uma Chit Funds lies in its customer-oriented products and services, which are backed by an extensive network of over 2,500 branches across the country. Some of these include:*

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Allotment of shares**

Fixed Deposit Services*

Credit Card Services*

Deposit Services*

Branchless Banking Service*

Investment Planning*

Housing Loan**

Cash Credit Facilities*

Personal Loan**

Home Loan**

Education Loan**

Car Loans**

Insurance Plan**

Hi, my name is Uma. I have a chit funds business in Pune from 3 generations. We are a non-banking financial institution (NBFI). We are an independent company that deals with chit funds. This is an ancient system where members pay a fixed sum of money every month for a set period of time and the sum is then divided into shares. The members then get back their investment plus interest at the end of the period.

To run a chit business you need to be registered with the Registrar of Co-Operative Societies under the State Government where you have your office. Usually the offices are located in the city center so that people can easily go there and collect their payments.

We also have offices outside India such as Canada, Australia, Dubai and Hong Kong. We also have representative offices in Bangalore, Pune and Delhi.*

My grandfather started this company as a retail chit finance organization in 1948. My father has been running it since 1972 after my grandfather's death. I am now managing this business from last 5 years with my husband Vinayak Kulkarni's assistance.

MORE INFORMATION :
WebSite URL: https://umachit.fund/
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