In our previous articles, we have made a clear comparison of how chits are a safe option for savings. We also made a caution that registered chits only provide you the much needed security. In this article, we will make a quick comparison of chits and eChits. For the benefit of the audience, we will define both the terms:
Traditional Chits: Chit is a sort of community funding where a group of individuals come together, contribute a predefined amount every month (period) and one person among the group will take the lump sum. This process will continue till all the group members get the amount. This is traditional way of doing chits.
eChits: The same process enabled on technology to create transparency and trust are termed as eChits. With the advancement of technology and mobiles, chits have gone digital with anytime, anywhere access. IBG eChits is one of India’s first digital chit fund company.
Here is a quick comparison between a traditional chit and an eChit
||Mutual Fund(SIP)||Recurring deposit|
|Ease of selection||Easy||Difficult||Easy|
|Risk||No risk||High||No Risk|
|Ability to borrow||Available (lower than market rate)||Not available||Not available|
|Principal Guarantee||Guaranteed||Risk of losing principal||Guaranteed|
|Financial discipline||Helps you to continue investing||Drop out risk is high||Drop out risk is high|
|More money than you save||At any point of time you
will get a lot more money than you saved
|At most you will get 10-15%
returns on your money but considerable risk of losing principal also
|Only money what is saved
minus discontinuation charges
|Regulator||Registrar of Chits||SEBI||RBI|
From the table it is quite evitable that eChits are a preferred option for the sake of convenience, transparency and trust. IBG eChits being a pioneer in this aspect has adopted the latest technology platform on blockchain to service its customers significantly. For more information, you can visit us at www.ibgechits.com or call us at +91 9010 820 002.