What is a chit fund?▲
A chit fund is a savings-cum-credit scheme where a group of people pool a fixed amount every month. Each month, the total pot is auctioned — the member who bids the lowest wins the pot. The difference (discount) is shared equally as "dividend" among all members. It's like a rotating credit union.
Is Assure Chit Funds legal and safe?▲
Yes, 100% legal and safe. We are registered and regulated under the Telangana Chit Funds Act, 1971. We are DPIIT recognized, and our payments are powered by SBI with 256-bit SSL encryption and biometric authentication.
How do I register and join a chit group?▲
Click "Register Free" and complete the e-KYC process using your PAN card and DigiLocker-linked Aadhaar. The whole process takes under 5 minutes. Once verified, browse available chit groups and join the one that fits your budget. No physical visit required.
What documents do I need for KYC?▲
You only need: (1) PAN Card, (2) Aadhaar-linked mobile number (for DigiLocker), and (3) a selfie for biometric verification. All done digitally through the app or website.
How does the auction work?▲
Every month, an auction opens for 24 hours. Members place bids — each bid is the amount they're willing to accept instead of the full chit value. The member who bids the lowest wins the discounted pot. The discount amount is divided equally among all members as dividend. Non-winners receive dividend + eventually get the full pot when it's their turn (if they haven't won yet).
When do I receive my dividend payment?▲
Dividends are credited to your registered bank account by end of the auction day — typically within 4–6 hours of the auction closing. You'll receive an SMS and app notification when the transfer is complete.
Can I join multiple chit groups simultaneously?▲
Yes! There's no limit to the number of chit groups you can join. Many members diversify across 2–3 different chit plans simultaneously to maximize returns and spread out their auction opportunities.
What happens if I miss a monthly payment?▲
We send reminders 5 days, 2 days, and 1 day before the due date. If you miss a payment, a small penalty (as defined in the chit agreement) applies. You are given a 7-day grace period. Persistent non-payment may result in suspension from auctions, but your invested amount remains safe.
How is the dividend taxed?▲
Chit fund dividends are considered "income from other sources" under Indian tax law. Assure provides detailed annual statements and TDS certificates to help you with your ITR filing. We recommend consulting a CA for personal tax advice.
Can I exit a chit group early?▲
Early exit is allowed under specific conditions as per the chit agreement (typically after 3 months). You can transfer your seat to another eligible member, or Assure may facilitate the process. Contact our support team for your specific situation.