From joining a group to receiving your payout
A chit fund runs on one repeating mechanism: a fixed monthly contribution, an open auction, and a payout to one member each month. Here's exactly how that plays out.
Five steps, repeated every month until maturity
A chit group is not a black box — the same five steps happen in the same order for every subscriber, every month.
- 01
Choose a plan and join a group
Pick a chit value and tenure that fits your monthly capacity. You sign a subscription agreement and are allotted a fixed ticket number in a group of subscribers.
- 02
Pay your monthly instalment
Every subscriber pays the same fixed instalment on a set date each month. This is logged in your passbook and in the office register on the same day.
- 03
The monthly auction is held
Subscribers who want the pot that month submit a bid — the discount they're willing to give up. The highest bid wins, in front of the group, under the licensed foreman.
- 04
Dividend and payout are credited
The winning bid amount is paid out to that month's winner. The discount is split as dividend and adjusted against every other member's next instalment.
- 05
The cycle repeats until everyone has drawn
The group continues monthly until every subscriber has won the pot exactly once — at which point the chit reaches maturity and closes.
Where the group's money actually goes each month
- Chit value
- The full pot size the group is saving toward — e.g. ₹5,00,000 for a Dhanam Growth group.
- Bid / discount
- The amount a subscriber offers to forgo to win that month's pot early. A ₹40,000 bid means they accept ₹4,60,000 instead of ₹5,00,000.
- Dividend
- The discount, minus foreman commission, split equally and adjusted against every other member's next instalment.
- Foreman commission
- A fixed 5% of the chit value, charged once across the tenure — the only fee the company earns from running the group.
Simplified to 12 months for illustration — actual tenure follows your plan.
What one month looks like, in rupees
Using a Dhanam Growth group — ₹5,00,000 chit value, 25 members, ₹20,000 monthly instalment. Real figures vary by group and by month's bidding.
Auction register · Month 8
Start your first chit this month
Speak with our branch team, review the registration certificate, and pick a plan sized to your monthly capacity — no pressure, no hidden clauses.