A member can give sureties depending on the future liability of the chit.
Following are the sureties generally submitted by the members.
1. Personal Surety: Any salaried person working in StateCentral Govt.Public Limited CompaniesBanks and other Reputed Companies will be taken as surety.
2. Income Tax Assessor: Any person having I T Assessment for the past three years having business Wholesale Germaine Pratt Jersey , profession etc will be taken as sureties.
3. Property Pledge: Deposit of title deeds of urban property can be submitted as surety. Third party property can also be given as surety.
4. FD Pledge: If a member is having any deposit with Margadarsi Financiers, he can pledge the deposit certificate as surety. Member can also make the deposit from the prize money, which will be accepted as surety.
5. Bank Guarantee: Guarantee given by the Bank in a schedule format can be submitted as surety.
Chit Better Safe than Sorry
鈥?In some cases the investor who wins the prized bid makes off with the money and does not contribute his pending share of installments.
鈥?Always go in for registered companies for chit funds and check their past track records in order to maintain the safety of your investment.
鈥?Always make sure that you have the capability to pay your monthly installments as any default could result in you making huge interest payments and severe penalties.
鈥?The group of investors should have the necessary funds to pay their installments so that the operations of the fund are not hindered. Members might be required to maintain a deposit with these funds.
鈥?There is a risk of the foreman running away with the funds. In order to prevent this from happening to you make sure that the fund is registered under Chit Fund Act 1982.
鈥?Always check the chit funds you invest in for tall claims such as enormously high rates of return and if there is a statement made that after you get the winning bid no further installments are needed you need to note that they are illegal according to the Chit Fund Act.
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