Unlike modern banking, Chit is an absolutely Indian concept and traces back from an ancient history. Legend has it that Chit Funds originated in India 1,000 years ago during the Maurya Dynasty during the regime of King Chandragupta. The nucleus of the concept is based on mutual trust, confidence, and cooperation. The basic principle is “No one stands to lose and all stand to gain!” This innovative concept was exported all over the World and over centuries served the needs of millions of people.
A quick primer on how Chit Funds work in India: A few people, say 6, would agree to save a certain amount, say 100 rupees, every month. The first month, the 6 people would get together and pool their money which would be 600 rupees. The names of all the members would be written on a chit (hence the name Chit Fund) and placed in a pot. One chit would be drawn and that person would receive the entire 600 rupees. Next month, they would meet again and pool their 600 rupees and another chit would be drawn from the pot. This process would continue for 6 months and everyone would save 600 rupees and receive the same amount. It is a very simple but powerful savings mechanism. Due to their nature, Chit Funds were local where members of the community would regularly meet and pool their money. However, with modernization of society and the development of transport and communications increasing the mobility of people, Chit Funds over the years lost their localized character.
At GoChitty.com we are bringing the power of technology and modern finance to this proven, centuries-old method. Moreover, we have improved the Chit Fund concept and brought it to the 21st century. We can now build a virtual community so distance is no longer a barrier. We use credit risk tools to assign risk ratings. We also increase the amount that the members contribute every time so if you wait longer, you get more money. Thus everyone selects the time when they want to receive the money rather than drawing chits from a pot. So as a result of these improvements, at GoChitty you can borrow cheaper, save faster, and invest better!
And it gets even better. As everyone in the US knows, having a good credit score is invaluable. It is necessary to buy a car, a house, even get your cell phone contract and in many cases employers do a background and credit check before offering a job. Now building a good credit score is not easy and takes time. Many people have to take out secured loans just to build a credit score. Participating in GoChitty has a huge benefit, as we report all contributions to credit agencies, you get to build your credit score while saving. So now imagine, being able to build your credit not just through borrowing but also through saving and investing!
Building your credit score using a Chit Fund is a proven method and recognized by the credit bureaus in the US.
See the power of saving within a community that has stood the test of time for over 1,000 years. Join GoChitty.com today to start saving money and building your credit.