About Chits

Chit fund is the oldest indigenous financial Institution in India. The term CHIT FUND is known as chit, Chittie or Kuri in different parts of the country. But its operation is same throughout the Country. Chit Fund is only convenient financial instrument which serves twin purpose of Savings and Borrowings to a subscriber. The financial institution, ensuring safest in investment, subjecting itself to the control of central and state chit fund acts, which empowers the common man is none other than Jagapathi Chits Pvt. Ltd.

Key Benefits of Jagapathi Chits Pvt.Ltd

  • Jagapathi Chits is a Private Limited Company operating in Bangalore. Karnataka. Chit Scheme from Jagapathi are instruments in saving money and reaping high-returns.
  • Auction Date & Time fixed at commencement of chit as permitted by Deputy Registrar of Chits and Co-operative societies.
  • monthly subscription from Rs. 2,000 - 50,000
  • Group Varying between 25 - 50 Months
  • Duration and subscription suiting to subscriber
  • Attractive dividends
  • Accurate documentation
  • Safety and Discipline & Customer Friendly
  • Successful Bidder chosen by drawing lots in case of a tie
  • In no-option situation prized money decided by open auction

What is a Chit and how it works?

Chit means a transaction whether called chit, chit fund, chitty, kuri or by any other name by or under which a person enters into an agreement with a specified number of people, that every one of them shall subscribe a certain sum of money (or a certain quantity of grain instead) by way of periodical installments over a definite period and that each such subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to the prize amount.

The general pattern of the chitty can be readily noticed by a simple formula:
Monthly Premium * Duration in Months=Gross Amount
30,000    *   30Months  =  9,00,000

Example: 30 subscribers agree to subscribe an amount of Rs. 30,000/- for 30 months i.e. for a total chit value of Rs.9,00,000/-, each subscriber will get his chit amount in his turn as determined by draw of lot or by auction. During auction all non-prized subscribers bid by allowing percentage of subscription to be forgone. The highest bidder i.e. who allows maximum percentage to subscribers is given the chit amount. The amount, foregone by the subscriber is distributed as dividend amongst all the subscribers in every draw, after deducting 5% commission / remuneration to be paid to the foreman of the company. Maximum bid is normally at 30%. In case there is more than one highest bidder in an auction, then draw of lots is made and the chit amount is given to the successful subscriber. These (25) subscribers constitute a ‘Chit Group’ and the Chit fund company can run many such groups. For each group approval of bye-laws and commencement certificate from the office of the Registrar of Chit Funds, is a must. The share of a subscriber in each chit is also known as a ‘ticket’.


  • 1st installment goes to the company’s chit account. This will be deposited with Deputy Registrar of chits and co-operative societies.
  • 2nd month and onwards the monthly auctions are conducted.
  • You are eligible to receive dividends from the third month onwards.
  • Bidding: Minimum of 5% to maximum of 30%.
  • Dividend amount earned every month will be distributed to the subscribers by crediting to their respective chit accounts.
  • Intimation for payment of installments will be sent in advance every month.
  • You may pay installment, through Cash/ NEFT/ Cheque / DD, directly at our office or through our Collection assistants who will drop in at your door step, at your convenience.
  • Failure in remittance of installment on or before the action date attracts penal interest.
  • Prized amount at 30% or less than this depending on the bidding will be disbursed taking suitable guarantors or security valuing 150% - 200% of Future Liability.
  • In case of inability to personally participate in the monthly auctions your representative can be deputed on your behalf by signing a bid offer form of our company.