How do we register in IBG?

Joining an eChit is very simple. Download ChitMonks app, register yourself and chose a chit that suits your
requirement from the available eChits. Click on the join chit link, share your details. Our team will
validate the details and will contact you within 24hours. Once you submit the required documents and make
your first payment, you will get the details of your subscription immediately.

Why should I join IBG?

eChit stands synonymous to transparency, efficiency and comfort. You will have control over chit and will be
able to take financially prudent decisions basis availability of information at your fingertips. We are
adding a host of extra benefits, which typically you won’t be getting in regular chits, especially to our
customers.

What proofs do I need to submit?

You need to submit KYC documents along with your income proof and 6 months bank statement.

How do we validate the subscribers who are joining?

We use an algorithm that will give a score to each subscriber basis the financial statements. We give utmost
importance to this process as we have to safeguard the interests of all non-prized subscribers.

Can customer join chit if he/she doesn’t have valid income source?

Valid income source is required to prove the ability to pay the monthly subscriptions.

How can I trust chit fund companies?

Registered chit funds are regulated by the state governments. A Registered Chit Fund Company makes a
Security deposit equal to 100% of chit value in a Schedule Bank as FDR, which is pledged in favor of
registrar of chits. Therefore, a member in a registered Chit Fund Company is very much secured than a member
in a non-registered company.

Can I monitor my Chits online?

IBG customers can login into ChitMonks app to see his/her chit information like dividend history,
subscription amounts and the interest rate prediction.

How do I pay?

You can make payments through cash, cheque, DD or through online payment mode from the ChitMonks app.

Can I withdraw/leave from a chit group after becoming a member?

When a subscriber withdraws/leaves, the foreman has to find an alternate subscriber in his place. Until then
the chit fund company has to arrange funds on behalf of that subscriber. Hence withdrawal is permitted but
the subscriber will get actual amount contributed in the chit minus company commission only at the end of
the Chit period or until the foreman finds a replacement.

Will my chit information uploaded to CIBIL?

None of your transactions with Chit funds are reported to CIBIL.

What interest rate can I expect?

Members who want to save money and receive the prized amount in the second half of the chit period, earn
higher return (12-18% per year), however returns vary for each chit group depending on the auctions. At
ChitMonks we try to balance a group composition with both savers and borrowers so that everyone gets better
reward.

What are the Income Tax benefits from saving or borrowing?

The dividends earned in a chit are not taxable. If you want to claim the bid as loss then these dividends
has to be shown as revenue income in the assessment. Hence the entire dividend earned in a chit is not
taxable if you don’t claim the bid amount as loss.

Should customer be present at the time of auction?

IBG customers need not come to office for auction. You can participate in live auction through ChitMonks
app. Your BID offers will be considered for deciding PS. For every group the auction time is 5 minutes on a
specified date and time. Members who wish to participate in the auction at our office are expected to be
present in the auction hall 10 minutes before auction time as verification has to be done by branch for
signatures of members. If a member is unable to participate in the auction the member can authorize some
other person whose signatures have to be authenticated by the member. Generally member authorizes the family
member or Development Officer’s and Agents as proxies to participate in the auctions. (We need to cover in
eChits, the auctions can be conducted online as well).

What are the sureties to be submitted?

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 State/Central Govt./ Public Limited
companies/Banks and other Reputed Companies will be taken as surety.
2. Pledge : Deposits with the company in chits or LIC bonds or FDs or National Savings Certificate
can be pledged against the future liability.
3. Bank Guarantee : Guarantee given by the Schedule Bank in a schedule format can be submitted as
surety.
4. Income Tax Assessor : Any person having I T Assessment for the past three years having business,
profession etc will be taken as sureties.
5. Property Pledge : Title deeds of urban property can be submitted as surety. Third party property
can also be given as surety.

Why are sureties or guarantors taken?

A chit fund company undertakes to collect periodic installments from all the subscribers and pay the amount
so collected, after deducting its commission (5% or the chit value) to one of the non-prized subscriber each
month. At every point in time, the chit fund company pays the prized subscriber more money, than what it had
collected from the prized subscriber, on the understanding that the prized subscriber will pay the balance
future instalment on time. In other words, the prized subscriber takes a loan advance from the chit fund
company, with an understanding to repay the balance future instalment in time, to enable the foreman to pay
the prized money to other non-prized subscribers each month. In order to safe guard the interest of all
non-prized subscribers each month the chit fund company insists upon the prized subscriber to provide
guarantee for repayment of future instalments.

What happens if I pay late?

If a non-prized subscriber fails to deposit his monthly subscription before the due date, penalty will be
charged @ 1.5% per month. In case a non-prized subscriber defaults for a continuous period of three months,
such subscriber can be removed with notices from the foreman as per the chit funds act. The actual amount
paid by him in the chit minus company commission will be repaid to such defaulting subscriber, after
completion of the chit period. In case a prized subscriber defaults for a continuous period of three months,
a penalty of 3% per month will be collected and dividends will not be paid to such defaulting prized
subscriber. Legal action will be initiated against the said defaulting prized subscriber and his guarantors
in court of law, for recovery of all dues.