Frequently Asked Questions

A chit is a savings-and-borrowing group. A fixed number of members contribute a fixed instalment every month into a common pool. Each month the pool is auctioned among members, one member takes the prize money, and every other member earns a dividend. Everyone gets their turn once over the life of the group.

Yes. We are Vetrivaagai Chit Funds Private Limited, registered and regulated under the Chit Funds Act, 1982, with our registered office in Sivagiri, Erode and a branch in Karur.

A registered chit works under the same discipline as an RD, but adds two things a fixed deposit cannot: an option to access the full pooled amount early through the auction, and a monthly dividend paid to every member who doesn't take the prize that month. All auctions are open, held on a fixed announced day, in front of every member.

The smallest group is TF M at ₹2,000 a month (₹50,000 chit value). First-month members pay an additional one-time ₹500 enrolment charge. Groups go up to TF V at ₹1,00,000 a month (₹25,00,000 chit value), so you can pick a size that fits your budget.

Just ID proof, address proof and the signed chit agreement. It's simple, and you keep a copy of everything you sign.

Yes. Many of our members run two or three groups of different sizes at the same time — one for a near-term goal and others as longer-term savings. Talk to our team and we'll help you plan a combination that matches your monthly cash flow.

Yes. Members can split their instalment into daily, weekly or monthly payments to match their own cash flow, as long as the full instalment is cleared before the month's auction.

Only members who have paid their full instalment amount are permitted to participate in that month's auction. Our recovery & collection team will follow up with you directly to help you catch up before the next auction date.

You collect a dividend every month the group runs, and members who hold out until the last few months typically earn the most — the surplus discount is shared out as it grows.

On a fixed announced day, at a fixed announced time, every month — in front of all members. The full schedule is handed to you when you join, so you always know when your group's auction falls.

30% of the chit value, on every group, every month. That cap protects the pool for members who are saving rather than borrowing.

The subscriber is selected by an open lottery method, conducted in front of all members present at the auction.

A flat 5% foreman commission on the chit amount, deducted from the auction discount before the remaining dividend is divided among members. There are no hidden charges beyond this.

Immediately after your surety and securities are completed and the documentation is in order. Our document & verification team processes this promptly so winners aren't kept waiting.

Yes. Management holds full authority to accept or reject a surety offered by a member, to protect the group and the other members' savings.

Yes. Your documents and payment records are used only for running your chit group and are not shared outside the company except where required by law or regulation.

Our registered office is in Sivagiri, Erode, and we run a Karur branch as well, with new groups opening there regularly. See our Contact Us page for both addresses.

Monday to Saturday, 9:30 AM – 7:00 PM. We're closed on Sundays, and auction days are announced monthly to each group.

Call us on 96007 13333, message us on WhatsApp, or visit any branch — our team is happy to walk you through a live auction schedule and exactly what your monthly outgo would look like.