History
History is what drives an institution,be in business or crypto.
Chit Funds were originated in the 17th century in the State of Malabar (now known
as the State of Kerala). Chit funds bring finance to the economy which also leads
towards the betterment of the society. Chit funds started gaining popularity soon
after the idea was formed but the mass adoption of this savings cum borrowing
scheme increased tremendously by the 18th century. The concept of Chit Fund is
absolutely an Indian idea although there are various versions of its history such
as:
In finance economy, capital comes from private savings and chit funds give a
boost to private as well as public savings. Due to increasing number of usages of
chit funds, an act was formed to regulate the chit funds also known as chitty. The
act was named “Chit Fund Act 1914” and each chit fund organisation had to get
registered under this act to operate legally. This act also implemented a fixed
number of foreman commission charge which was 5% but as we have backed
our platform with blockchain technology and tried to save as much costs as
possible, it allows us to settle with our foreman charges varying from 2% to 4%
depending on the chit size.
Chit funds are co-operative in nature where a group of individuals come and
start saving money together to be later utilized by any person in a financial crisis
or need of some quick cash. Usually borrowers have to a pay huge commission
to the lenders but in chit funds, the borrowers gain immense benefits from the
lenders such as minimum interest rate, dividends as bonus, etc. Chit funds were
originally used for domestic purposes like marriages, construction, etc but now
they have paved their way towards the business sector to be able to support
small scale as well as large scale industries for purpose such as expanding etc.
Although being the most profitable scheme in terms of savings, chit funds are not
yet in the limelight in financial sector. Chit funds have been playing an important
role in mobilization of the financial resources.
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UMA CHIT RESOURCES
https://steemit.com/@umachitfund
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https://www.reddit.com/user/UmaChitFund
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About the author
Joseph Johns
Bitcointalk Username jaered
Eth wallet 0x81e654e6378192feF40b64508D852BB11E9ACF78