Chit Funds have the
advantage both for serving a need and as an investment. Money can be readily drawn in an
emergency or could be continued as an investment.
Interest
rate is determined by the subscribers themselves, based on mutual decisions and varies
from auction to auction.
The
money that you borrow is against your own future contributions.
The
amount is given on personal sureties too; unlike in banks and other financial institutions
which demand a tangible security.
Chit
funds can be relied upon to satisfy personal needs. Unlike other financial institutions,
you can draw upon your chit fund for any purpose - marriages, religious functions, medical
expenses, just anything...
Cost of
intermediation is the lowest.
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