2 Lakh Chit for 20 Months in 2023

Are you looking for a smart and effective way to save money? Look no further than a chit fund! This unique financial tool has been around for centuries and is gaining popularity once again. In this blog post, we will explore the world of chit funds, how they work, their benefits, and even give you some tips on starting your own. Whether you’re saving up for a dream vacation or planning for the future, a 2 lakh chit for 20 months could be just what you need. So let’s dive in and discover how this innovative savings scheme can help you achieve your financial goals!

2 Lakh Chit for 20 Months

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What is a chit fund?

A chit fund is a financial scheme that brings together a group of individuals who contribute a fixed amount of money every month. This pool of funds is then auctioned off to one member, known as the “subscriber,” through a bidding process. The subscriber receives the lump sum and continues to contribute monthly installments until all members have received their turn.

The concept behind chit funds is simple – it provides an organized platform for people to save and borrow money within their community. It’s like having your own private savings club! Chit funds are typically managed by registered companies or organizations that oversee the entire process, ensuring transparency and fairness.

One of the key advantages of participating in a chit fund is its flexibility. Whether you need immediate access to funds or want to build up savings over time, there’s an option for everyone. Additionally, unlike traditional loans from banks or other lending institutions, there are no interest rates involved with chit funds.

Another benefit of joining a chit fund is the discipline it instills in saving regularly. By committing to monthly contributions, participants develop healthy financial habits and can achieve their goals faster than they might otherwise.

Chit funds offer individuals a unique way to save money while also providing opportunities for borrowing when needed. So if you’re looking for an alternative savings method that fosters community support and flexibility, consider exploring the world of chit funds!

How does a chit fund work?

How does a chit fund work? It’s an interesting question with a simple answer. A chit fund is a type of savings and investment model that operates through a group of individuals pooling their money together for mutual benefit.

In a chit fund, the group members contribute a fixed amount every month for a specified duration, typically ranging from 12 to 36 months. Each month, one member is selected through bidding or lottery to receive the total sum collected that month.

The process continues until all members have received their share of the pooled funds. This means that each member gets access to a lump sum amount at different points in time throughout the duration of the chit.

One key advantage of participating in a chit fund is that it allows individuals to accumulate savings and access funds when needed without relying on external sources like banks or lenders.

Moreover, since there are no interest charges involved in this system, participants can save on interest payments compared to traditional loans.

However, it’s essential to note that while chits offer opportunities for financial growth and flexibility, they also come with risks. Participants must carefully evaluate the reputation and credibility of the organizer before joining any chit scheme.

To join or start your own chit fund, you need to find trustworthy organizers who comply with government regulations regarding such schemes.

Understanding how a chit fund works can help individuals make informed decisions about their investment strategies. While it offers benefits like financial flexibility and saving options without interest charges, caution should be exercised when selecting reliable organizers for participation in these schemes.

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The benefits of a chit fund

A chit fund offers several benefits that make it an attractive investment option for individuals looking to grow their savings. One of the key advantages is the flexibility it provides in terms of monthly contributions. Unlike fixed deposits or other traditional savings methods, a chit fund allows you to decide how much you want to contribute each month based on your financial capabilities.

Another benefit of a chit fund is the potential for high returns. Since the money collected from all participants is pooled together and given as a prize amount each month, there’s a chance that you could win a larger sum than what you contributed. This can provide a significant boost to your savings over time.

Additionally, participating in a chit fund encourages disciplined saving habits. By committing to regular monthly contributions, you develop the habit of setting aside money regularly, which can help improve your financial discipline and planning skills.

Furthermore, chit funds also offer an element of liquidity. In case of an emergency or sudden need for funds, you have the option to borrow against your future winnings in the chit group without any additional interest charges.

Being part of a chit fund creates opportunities for networking and building relationships with like-minded individuals who share similar financial goals. It provides a platform where members can exchange ideas and gain insights into various investment strategies.

Investing in a chit fund has its own set of advantages ranging from flexible contributions and potential high returns to fostering disciplined saving habits and creating networks within communities interested in growing their wealth together.

How to start a chit fund

Starting a chit fund can be an exciting venture for those looking to enter the financial market. However, it is important to understand the process and steps involved in setting up a successful chit fund.

  1. Research and Planning: Before starting a chit fund, thorough research is essential. This includes understanding the legalities, rules, and regulations governing chit funds in your country or state. It is also crucial to identify your target audience and assess demand for your services.
  2. Obtain Necessary Licenses: In most jurisdictions, obtaining the required licenses and registrations is mandatory before operating a chit fund business. Consult with local authorities or seek professional advice to ensure compliance with all legal requirements.
  3. Set Up Operations: Determine the physical location of your office where you will conduct operations smoothly while maintaining accessibility for customers. Consider investing in appropriate technology and infrastructure to effectively manage transactions and communication with participants.
  4. Build Trust: Building trust among potential participants is vital for the success of your chit fund scheme. Develop transparent policies that clearly outline terms and conditions, interest rates, penalties, bidding processes, etc., ensuring complete transparency throughout.
  5. Marketing Strategies: Implement effective marketing strategies to reach out to potential customers who may be interested in participating in your chits. Utilize various channels such as social media platforms, online advertisements, word-of-mouth referrals from satisfied participants to promote your services.
  6. Diligent Record-keeping: Maintain accurate records of all transactions related to each individual’s participation like monthly contributions received/paid by members along with any other relevant details like fines imposed or prize money won during auctions held periodically.

Remember that starting a successful chit fund requires dedication,time,and effort.

So make sure you are fully prepared before taking this decision

Chit fund tips

Chit funds can be a great way to save money and earn some extra income. If you’re considering starting your own chit fund, here are a few tips to help you get started.

  1. Research and Understand the Legalities: Before diving into the world of chit funds, make sure you thoroughly research and understand the legal requirements and regulations in your area. This will ensure that you operate within the law and avoid any potential issues down the line.
  2. Set Clear Objectives: Define your goals for starting a chit fund. Are you looking to generate additional income or simply save for a specific purpose? Having clear objectives will help guide your decisions throughout the process.
  3. Build Trust with Participants: A successful chit fund relies on trust among its participants. Make an effort to build strong relationships with them by being transparent, communicating effectively, and addressing any concerns they may have promptly.
  4. Develop Solid Documentation Processes: It’s crucial to maintain accurate records of all transactions related to your chit fund. Establishing robust documentation processes will not only keep everything organized but also provide clarity in case of any disputes or discrepancies.
  5. Regularly Evaluate Performance: Keep track of how well your chit fund is performing by regularly evaluating its financial health, participant satisfaction levels, and overall efficiency. This will help identify areas for improvement and ensure that your operations remain profitable.

Remember, starting a chit fund requires careful planning, attention to detail, and dedication. By following these tips, you can increase your chances of running a successful venture that benefits both yourself and the participants involved


In this fast-paced world, where financial stability is a top priority for many individuals, chit funds offer a unique and advantageous solution. With the flexibility to customize your investment amount and duration, chit funds provide an accessible avenue for saving and borrowing money.

By participating in a chit fund with a contribution of Rs. 2 lakh over 20 months, you can not only secure your savings but also stand a chance to win the entire sum through monthly auctions. The potential returns make it an attractive option for those looking to grow their wealth steadily.

Starting a chit fund requires careful planning and adherence to legal regulations. It is essential to choose reputable organizers who have proven track records of managing successful chits. Proper documentation and transparency are crucial factors that contribute to the trustworthiness of any chit fund establishment.

To make the most out of your participation in a chit fund, consider following these tips:

  1. Research extensively: Before investing in any scheme or joining any group, conduct thorough research about its reputation, past performance, terms & conditions, and legal compliance.
  2. Plan your finances: Assess your financial situation carefully before committing yourself to regular contributions towards the chit fund. Ensure that you can comfortably manage the monthly payments without straining your budget.
  3. Be consistent: Regularly contribute towards the pool as per agreed-upon terms to maximize your chances of winning during each auction cycle.
  4. Stay informed: Keep yourself updated on all announcements made by the organizers regarding auction dates, prize amounts, or any changes in rules or policies.

Remember that while participating in a chit fund offers numerous benefits such as disciplined saving habits and potential returns on investments if managed correctly; it’s vital always exercise caution when dealing with financial matters.

In conclusion (without explicitly stating “in conclusion”), opting for a 2 lakh rupee investment across 20 months through a well-regulated and trustworthy chit fund can be a wise financial decision. It allows you to save, invest, and

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