Our Chit Plans
Every individual or any business entity will have financial requirements to meet their family needs or business requirements. Funds are required to fulfill the dreams of an individual or business cash flows. We at northeast have chit plans for all the needs.
In case of Individuals, one may have chit plans required for
- Purchase of house
- Home interiors
- Purchase of vehicle
- Children education
- Marriage of children or siblings
- Foreign travel
- Clearance of some old debts
Similarly, Funds flow is the lifeline of any business. MSMEs and Corporates need finance for various needs, both short-term and Long Term. These needs may be planned requirements or any sudden/unforeseen/seasonal requirement.
LONG TERM | SHORT TERM |
Setting up of new Unit | Working Capital |
Purchasing of Vehicles | Seasonal Requirement |
Clearance of high cost debt | Payment of license fee |
Opening of new Office / Unit | Bulk Procurement |
Purchase of machinery | Repairs & Renewals |
Construction | Receivables Gap funding |
Land Purchase | Clearance of short-term debts |
The above are only illustrative examples, but not exhaustive. There may be several large requirements for individual and business entities.
We are your Trusted Financial Partner
to help you Realise Your Dreams
- There are millions of Individuals and business entities looking for large amounts to meet such requirements. A Chit fund is a time-tested financial instrument which is in existence for centuries.
- The product is too simple to understand, invest and reap the benefits.
- Here members join a group, save regularly and depending upon the urgency and need for funds, draw from the Group.
- We have Chit Plans ranging from Rs 5 lakh, Rs 10 lakh, Rs 15 lakh, Rs 20 lakh, and Rs 25 lakh for meeting the requirements of Retail investors.
- At the same time, we also have chit Plans from Rs 30 lakh, Rs 60 lakh, Rs 90 lakh, Rs 1.25 Cr, Rs 2.50 Cr and Rs 5 Cr for the High Net worth individuals, and predominantly MSMEs.
- These Chit Plans may be for a short term of 25 months or a long term of 50 months. Usually, chits up to Rs 25 lakh are long-term chits with 50 months duration. Chits above Rs 30 lakh are short-term with 25 months period.
- Members may enroll with us directly, through our sales staff or our authorized agents.
- Before the commencement of each group, the Company shall deposit an amount equivalent to the Chit amount with a Scheduled bank and the Deposit receipt will be submitted to the Registrar of Chits (ROC). Thereafter the ROC shall permit the company to start the Group.
- EMI of a group is the total chit value divided by the chit members. In the joining month, all the members will be paying the full amount. In the first month, there will be an auction and the group members who are in urgent need of funds will bid the highest amount that he is prepared to forego. This amount is called a Dividend and the same is equally distributed among all group members including the prize bidder. Auctions are conducted for each group at specified times and dates. The dividend amount shall be reduced from the monthly EMI payable and the chit investor is expected to pay only the balance. This process gets repeated every month till every member of the group is paid. The maximum permissible Bid Auction amount for chits of 25 months is 30% and for the chits above 25 months, the same is 40%
- Agents will be paid a commission by the company as per the best industry practices. Every month, the successful bidder also needs to pay the Commission to the company as permitted in the Chit Fund Act. Though the Act permits a commission of 7%.
- For enrolling members
| Constitution | Constitution Individuals, Proprietorship, Partnership, Private Limited Company, Public Limited Company, LLP, HUF, Trusts |
| Activity | Customers from any business may be entertained other than illegal activity |
| Command Area | Preferably from HMDA. However we may accept the members from other places depending on their referral, credit evaluation |
| Processing Fee | For Chits upto Rs 10 lakh - Rs 300 For Chits from Rs 15 lakh to Rs 25 lakh – Rs 500 For Chits from Rs 30 lakh to Rs 90 lakh – Rs 2500 For Chits of Rs 1.25 Cr and above – Rs 5000 |
CHIT ONBOARDING PROCESS
All investors are to submit the duly filled-in applications of the company. Along with the application, the documents to be submitted are
Retail
In case of Retail Chits up to Rs 25 lakh, the investor must submit Self-attested copies of Aadhar and PAN details.
MSME
In case of MSME chits of Rs 30 lakh and above, the investors must submit
- Business registration certificate
- GST registration
- PAN
- Partnership deed / MOA
- Board resolution in case of companies
Basic KYC documents such as Aadhar and PAN of the partners/directors.
All copies are to be self-attested.
CHIT BID PAYMENT PROCESS
- Customers who have paid up-to-date EMIs are permitted to participate in the auction alone.
- Chit will be awarded to the members who bid for the highest month at the specified time. In case of more than one member bids for the highest amount, a lucky draw with the names of such members will be conducted. A maximum permissible bid is 30% for chits up to 25 months and 40% for more than 25 months.
- In the case of Retail Chits, the investors must submit the personal guarantee of three persons. It is preferable that all the personal guarantors must be Govt employees. Guarantees of employees of the IT sector or other private sector and guarantees of Self-employed / business persons will also be accepted. Salary or business income should be adequate for recovering balance chit liability. Please contact us for further details.
- After the 36th month, the personal guarantee of one Govt employee is adequate. For Chits of Rs 25 lakh, the successful bidder or one of the guarantors must also submit a copy of the property’s sale deed. The estimated value of the property should be more than chit liability.
- Verification of all the documents submitted will be conducted by the company.
- After being the successful bidder, the member needs to submit
- Latest 3 months' salary slips including that of guarantors
- Last 6 months' bank statement where Salary is being credited
- In the case of Business Income, the ITR / ITAOs of the last three years. If the last ITR is more than 6 months old, the unaudited balance sheet as of last Mar.
- Latest CIBIL report for chits of Rs 30 lakh and above.
- The company must be satisfied with the future paying capacity of the successful bidder. The company may seek additional documents if required. The Chit bid amount shall be paid only if the company is satisfied with the repayment capacity of the successful bidder.
- The company shall also accept other forms of security wherever the prized bidders express difficulty in getting personal guarantees.
Payment Options
- We encourage the customers to register NACH for a smoother payment process. NACH may be given for a date keeping given their monthly cash inflows. If the customer opts for the NACH mandate from 1st month, the company shall extend some concession in the EMI amounts payable.
- Customers may also pay through
- Phonepe
- Google pay
- Mobile banking
- Internet banking
- Cash ( Subject to IT Dept guidelines )
The company shall intimate the due date of EMI payment for each group. If there is a delay, the penal interest at the rate of 12% shall be charged.
Customers will be given receipts for all payments made and an Account statement.
The company shall be offering several incentive concessions to the Agents and the chit-group members from time to time. For further details, please contact us.
