Chit Fund

A chit fund company is as good as its Foreman
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‘Foreman’ means a person who under the chit agreement is responsible for the conduct of the chit and includes any other person discharging the duties of the Foreman. It is the personality and conduct of the Foreman, whether individual or institutional, that lends strength to a chit Fund Company. A Foreman credited with qualities like promptness, straightforwardness and honesty attracts subscribers easily for the chit fund company. Similarly, basic dishonesty and unscrupulousness on the part of the Foreman can break it. The Foreman assumes a dual role. Besides being an organizer, he also is a subscriber in every chit group. He is also entitled to obtain one chit amount into the chit group without deduction of the amount. It is a good practice if the Foreman ploughs back the entire prize amount into the chit business to meet his future obligations promptly. This ensures prompt payment to subscribers even in the eventuality of some members defaulting on the payment of their installments or discontinuing their membership. Thus ensuring that failure on the part of some members does not become an excuse for the Foreman to delay the Bid Payable amount to the subscribers.   

Why Margadarsi?
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The hallmark of Margadarsi’s success is its meticulous planning, coupled with hard work and deep commitment to serve its customers in the best possible manner. New schemes are introduced form time to time to meet the financial needs of the customers and fulfill their aspirations. With a task force of 4,300 employees, 8,000 agents and development officers, efficient and prompt services are available to customers at all times. Subscribers can rest assured that the company will serve its customers with the same zeal throughout the association, right up to the termination of the chit.  Keeping with its promise of providing high quality professional and personalized service, Margadarsi started the unique ‘72 hour response’ facility. This facility of quick disbursement of money (subject to documentation) is unique to Margadarsi and currently not being offered by any other chit fund company. 

If for any reason, a subscriber fails to draw the prize amount before the next succeeding auction, the prize amount payable is deposited in a separate bank account. This money is earmarked for payment to the concerned subscriber only. Thus Margadarsi ensures total security for subscribers’ money.

It is this understanding of the need and requirements of customers that enabled the company to reach out to so many subscribers and continues to do so. Margadarsi’s impeccable track record and its strict professional discipline have earned it tremendous good will and respect across the social chain: Professionals, industrialists, corporate executives, government employees, teachers, housewives and more. They all know and have experienced the company’s commitment to give the best and its ability to meet every kind of need. Besides they are secure in the knowledge that Margadarsi belongs to a stable financial group that shares an excellent relationship with all its customers. This success hasn’t come easy. Nor has it in any way made the company take it easy. It was the first chit fund company of its kind and Margadarsi continues to remain the first choice for lakhs of people from the different walks of life.

How Margadarsi works
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With its vast experience in the field, Margadarsi has made systems and procedures simple, systematic and full proof. Subscribers can choose from a wide range of chits from Rs. 25,000 to Rs. 50,00,000 designed to suit a variety of requirements. To become a subscriber, individuals need to fill out an enrollment form, and opt for any of the chit schemes available with monthly installments ranging from Rs. 1000 to Rs. 1.00,000. Depending upon the requirement, one may choose Long Term Chits (50 month duration) for saving purpose and Short Term Chits (25 months duration) for emergency planning. Subscribers are entitled to bid at the auction even if only one installment has been paid i.e., the first installment. However, depending upon the requirement and competition, one can get the bid in any of the installments. After being declared as successful bidder in the auction, the successful bidder has to submit sureties depending upon future liability either from salaried employees with required basic salary or business people having taxable income or even property mortgage. Thereafter, the prize money is released after completing a few formalities. The chit money has to be paid back in remaining easy installments. The successful bidder earns his or her profit by repaying the monthly installments excluding the dividends.

Margadarsi, a lifelong friend
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Every individual is driven by hopes and aspirations, but may lack the resources to make them come true. Sometimes, there are emergencies, obligations and unforeseen expenditures. All these occasions require money in lump sum. It is on occasions like these that one can turn to Margadarsi for help. Be it educating children or performing their marriage, constructing a house or buying a flat or investing in security for the future, Margadarsi has always been like a trusted friend. The company has been playing a vital role in making life easier for all those who’ve invested their confidence and hopes in it. This explains why the company has become synonymous with trust and reliability.

Pitfalls in the chit fund system
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Lured by the objective of making quick profits, persons with inadequate means start chit funds by furnishing the required security and fulfilling other prescribed formalities in the Act. Since their objectives are neither honest nor legal, such companies roll down their shutters soon, thus cheating many gullible investors .