Terminologies Used In Chit Funds

A person or A Company responsible for formation of A Chit group, Collection of subscriptions, conducting chit auction and disbursing the amount to the successful bidder. For these duties, he is paid a fee, which is generally 5% of the chit amount.

This simply means any person who agree to subscribe to the chit group and to contribute the prescribed contributions for the full period of the chit group.

Official appointed under the Chit Fund Act, This means he is the authority to approve the formation of a group, commencement of chit and conduct of group as per laid down rules of law.

The sum total of the subscriptions payable by all subscribes for any installment of a chit.

It denotes a share of subscriber in chit series of a particular chit denomination and is identified with specific number assigned by the foreman.

The serial number of the subscriber in the chit. Acct no.

A subscriber who has received the prized amount.

The sum of money which a prized subscriber is required to forego, under the terms of the chit agreement and which is set apart to meet the running expenses of the chit and for distribution among the subscribers of the chit.

The manner specified in the chit agreement for the purpose of ascertaining the prized subscriber every month.

The difference between the chit amount and the discount.

A subscriber who is yet to bid for the prized amount.

The share of the subscriber in the amount of discount available under the chit agreement for distribution among the subscribers.

A subscriber who has defaulted in the payment of subscriptions due, in accordance with the terms of the chit agreement.

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